Service tax on employees payment

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Tammanagouda (Querist)
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31 July 2013 Dear Sir,

we are running a business with partnership firm Know we are providing 10 people to on e the private company and payment for employee will be paid by us mean time company will refund the employee salary to our firm
my question is whether we need to pay the service tax or not If so how much % to pay
by us and how much % from pvt company
What is the procedure to pay the ST.

Kindly give the suggestions or details

CA Suresh Jain

CA Suresh Jain (Expert)
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31 July 2013 The service provided by you is covered under service tax as "supply of manpower for any purpose".

As per Notification No. 30/2012-Service Tax dated 20/6/2012 reverse charge is applicable to this service, as per this 25% of the service tax is payable by the service provider and 75% of the tax is payable by the service receiver.

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Gopalkrishna Hegde ,CA,DISA

Gopalkrishna Hegde ,CA,DISA (Expert)
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01 August 2013 Hi

As mentioned by Mr. Suresh. The reverse charge mechanism would apply in respect of supply of manpower for any purpose or security services.

As you have mentioned it as a partnership firm. and being service provider, you would be liable to pay 25% of service tax.

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Gopalkrishna Hegde ,CA,DISA

Gopalkrishna Hegde ,CA,DISA (Expert)
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