Tax liability
This query is : Resolved
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
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
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
24 December 2012
But the service provider is an individual and not having eligible turnover for charging service tax
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
If still there is any onfusion you csan send me a PM
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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
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
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.
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.
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