Get 3 Yrs of CCI Pro Membership at Greater Value. Subscribe Now!

Service tax on reverse charge

Save Share

This query is : Open

mangala satam (Querist)

01 February 2013 Sir,

If as a company i am receiver of services under hireing of motor vehicle in which service provider is company. and they are charging services @ 4.95% i.e 12.36% of 40% of total value of services. so in this case do i need to pay bal 60% value to govt. or i should ignore as receipient and provider both are body corporate???

Also as a body corporate i am receiving services under the category of supply of manpower, and as an individual provider is not chargeing service tax on his bill then as a receiver should i pay 75% service tax or 100% service tax as he is not chargeing any amt of service tax
kindly advise

CA Vipin Jain

CA Vipin Jain (Expert)

01 February 2013 for paragraph-1, you should ignore as service provider is corporate.

for paragraph-2, you should pay 75% only. For reverse charge payment by service provider is irrelevant for calculation of service tax payable by service recipient.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now