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Reverse tax on manpower supply

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This query is : Resolved

Pavanendra (Querist)
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10 July 2013 Dear Sir,

We received the Manpower service from some XXX.That party didn't Charge Service tax of his share i.e 25 per amount. Then is it need to pay the service receiver share on 75 per amount. please give me the reply.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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10 July 2013 Yes Service recipient is required to pay his portion of Service Tax i.e., 75% under RCM.

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RENGARAJ R.K

RENGARAJ R.K (Expert)
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10 July 2013 You have not informed whether you are a private or public limited company.

Company or a business entity registered as
body corporate located in the taxable territory is liable to pay 75% on manpower supply even if the service provider do not charge in his bill. This is under reverse charge mechanism.

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