Service tax on service provided by man power supplier

This query is : Resolved

UDAY KANAKADURGA RAO P (Querist)
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17 September 2012 Hi,

If Mr.X provides manpower to me on some lump some basis (say Rs.40,000).

Such vendor is not registered under service tax.

Then what is the amount of service tax to be paid as a service receiver?

1. Whether 75% or 100% of the service tax to be paid(since the provider is not registered for service tax)?

2. Which amount should be considered for calculating service tax:
i.e., on Rs.40000*(75% or 100%)
or
Rs.40000*(75% or 100%)/112.36
[i.e., should be charged directly or on reverse charge basis]

Pl. guide me..

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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17 September 2012 First of all if you are body corporate then only liable under reverse charge-
ST will be 40000*12.36%*75% i.e 3708 will be paid by you to the govt.

UDAY KANAKADURGA RAO P

UDAY KANAKADURGA RAO P (Querist)
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18 September 2012 It is a corporate body in the eyes of law.

And this company is into providing service.

If service provided by such vendor is not crossing the threshold limit of Rs.10 lakhs.

Then it is clear that the vendor is not required to pay ST. But, in that case should we pay 75% of ST on his behalf??