02 September 2013
Dear Sir, I have referred about my query previously asked by somebodies in our site. According to that what i understood is Bill by Man Power supplier
100 emp x 1000=100000 S.tax 12.36% =12360 Total Bill Amount=112360
In Tax amount 12360- 75%=9270 to be paid by the contract receiver remaining 25% of Tax amount 3090 to be paid by the service Provider.
Dear all please confirm whether i understood right or wrong if not please explain me.
02 September 2013
this calculation is correct in the case if Service provider is - Individual, HUF, Proprietary firm, Partnership firm and Service receiver is - Business entity registered as body corporate.
02 September 2013
this calculation is correct in the case if Service provider is - Individual, HUF, Proprietary firm, Partnership firm and Service receiver is - Business entity registered as body corporate.
02 September 2013
In the reverse charge mechanism, Man power contractor has to charge 25% of the total service tax and he will raise the bill for Rs. 100000+3090. Balance service tax paid by the service receiver company. If manpower contractor is public or private limited company, in that case there is no liability of service receiver. Your concept is correct. Hope you understand.
02 September 2013
Dear Pardeep Khaneja Thanks for ur reply,
In my case Service Provider is a partnership firm, Service recipient is a proprietor concern. 1st invoice they have already raised like Rs.100000+3090(25%)=103090 but i said to them to raise a bill like Rs.100000 S.tax-12360(100%) Total =112360 but the receiver will pay 109270(75% S.Tax) remaining 25% of S.Tax to be paid by the service provider from his hand. Is that right kindly confirm me.
Position is reverse, 75% borne by Service Receiver and 25% Service tax borne by Service provider.
Service provider will raise bill for Rs. 103090 only. but you have to calculate balance service tax i.e. 75% of total service tax and deposit to government and take credit for the same on the basis of service tax challan.
Service provider having only responsibility to charge service tax upto 25% on bill. He will not charge full service tax.
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