Tax liability

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samscool (Querist)
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24 December 2012 Dear Sir/Madam,

I have received a bill of manpower supply from a service provider who is not registered under service tax because he is an individual and not having eligible turnover for service tax so he did not charged service tax on the bill and as a service receiver am i liable to pay service tax under reverse charges mechanism or not.We are a pvt ltd company and also registered under service tax.

Kindly advise

Regards ........ Shekhar Arya

naresh

naresh (Expert)
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24 December 2012 You are required to pay 75% portion of Service Tax under Reverse Charme Mechanism as Per Notification 30/2012 of Service Tax

samscool

samscool (Querist)
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24 December 2012 But the service provider is an individual and not having eligible turnover for charging service tax

naresh

naresh (Expert)
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24 December 2012 Still you will have to pay Service Tax.You should not be concerned with the Service Provider .You should see your Liabiltiy as a Service Recepient and as such there is no such exemption to the Service Receipient.in my opinion you will have to pay Service Tax on 75% of the Assessable value.
If still there is any onfusion you csan send me a PM

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samscool

samscool (Querist)
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24 December 2012 Dear Sir,

Thanks for your kind advise, please also clear my cenvat part in this case

if i pay 75% of service tax liability than can i also claim cenvat credit.

regards shekhar arya

naresh

naresh (Expert)
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24 December 2012 No you are not eligible to claim Cenvat Credit on it

naresh

naresh (Expert)
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24 December 2012 Sorry, You are eligible to take Cenvat Credit once paid and eligible as "input Service".However Cenvat credit cannot be used to pay tax by service receiver. Service tax as to be paid by cash only i.e. GAR-7 challan.

naresh

naresh (Expert)
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