Service tax on labour supplier
This query is : Resolved
08 November 2013
One of the my client is labour supplier in Co.He is not registered in Service tax.His last year's turnover is 1.10 cr.He as well as his co has not deducted st.who is liable for it ?if he want to pay st how much amount he has to pay ?
08 November 2013
The labour contractor is rendering Manpower Supply & Management Services. He is liable for registration as a service provider under that category since his turnover exceeds the threshold limit.
The status of your client has not been specified. Assuming he is not a body corporate - under the Reverse Charge Mechanism on Manpower Supply & Management Services he will be liable to pay ST on 25% of his billing @ 12.36% i.e on the turnover specified the ST would be about Rs.3.5 lakhs. This amount should be paid after registration inclusive of interest @ 18% per annum on daily basis.
The Service Recipients, especially bodies corporate would have paid 75% of the tax under Reverse Charge Mechanism.
Once again, as I have mentioned in other replies, ST is paid in addition to the remuneration for services rendered and it is not deducted from the billed amount. If service Tax is charged in the invoice, the same is paid by the service recipient to the service provider, who in turn deposits the same to the Treasury.
The status of your client has not been specified. Assuming he is not a body corporate - under the Reverse Charge Mechanism on Manpower Supply & Management Services he will be liable to pay ST on 25% of his billing @ 12.36% i.e on the turnover specified the ST would be about Rs.3.5 lakhs. This amount should be paid after registration inclusive of interest @ 18% per annum on daily basis.
The Service Recipients, especially bodies corporate would have paid 75% of the tax under Reverse Charge Mechanism.
Once again, as I have mentioned in other replies, ST is paid in addition to the remuneration for services rendered and it is not deducted from the billed amount. If service Tax is charged in the invoice, the same is paid by the service recipient to the service provider, who in turn deposits the same to the Treasury.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- STCG....................................................
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- Sales return eway bill
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- TAN for Partnership
- Free lancer income
- Is it compulsory to File 10E if Income including Pension Arrears is below 12 Lakh for the F Y 25 26
- Is E Way Bill Valid If Transport ID Not Mentioned in PART A But Vehicle details mentioned in PART B
- STCG FOR GOLD ETFs
- Suggestions required for income tax filing-software (FY 2025-26)
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
