Sevice Tax on Manpower Supply

This query is : Resolved

Ashok (Querist)
Follow

21 December 2007 Hi

One of my client is in the business of Supply of manpower for construction of building. His receipts for F.Y.2006-07 was Rs.25 Lacs. Even during this year F.Y.2007-08 his receipts already exceeded Rs.8 Lacs. Now he want to apply for ST regn.
Can anybody guide me on this issue.
From which date he should apply for ST regn? What will be the interest & penalty?
What should he do if some of his clients will not pay ST portion?
Is there any wayout?

Thanks

Dayal

Dayal (Expert)
Follow

30 January 2008 Once it is identified that he is providing manpower, it is a notified taxable service under the category of Manpower Recruitment and Supply Agency 65(105)(k)

A suitable application in form ST1 to be made to the authorities immediately.

Registration will be granted from the date of application, however previous period liability will have to be discharged.

For the period 2006-2007 service tax will be payable after the threshold limit of 4 lakhs i.e service tax will be payable on 21 lakhs (25-4)

In the subsequent year 2007-08 he cannot exercise SSP provisions has be has crossed the threshold limit in the previous financial period

The Rate of interest applicable is 13%

For example liability of April-06 was payable on 5th May –06 interest for april will be payble form 6th May till the date of payment. And this will be applicable for subsequent months.

His clients can claim Service tax paid by your client as input credit.

If however he is off hand aware that is clients will not pay, then he can treat the amount received by him as inclusive of service tax and work backwards

For more details visit https://www.caclubindia.com/homepage/DM%20Associate/

As our Hon’ble Finance Minister has clarified , do not seek ways and means to play around with the law, spend your quality time with your family, take a walk, enjoy the nature and leave the law to be managed by the law makers

Dayal

Dayal (Expert)
Follow

30 January 2008 Should you need any further clarification do write back on associatedm@gmail.com

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

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

yogesh korani

Pratap Kumar De

CA Archana R

Amit Bhatkar

T E SOUNDARARAJAN

Subscribe Now

Sevice Tax on Manpower Supply

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

GST CONSULTANT

CA Final

GST CONSULTANCY

Article Assistant

Accountant

Manager- Finance and Compliance