What will be the treatment of service tax

This query is : Resolved

G.Nagaseshareddy (Querist)
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27 January 2015 if both service provider as well as service recipient are corporate bodies. whether reverse charge machanism applicable or not. who has to pay the service tax ?

CA Deven

CA Deven (Expert)
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27 January 2015 KINDLY LET ME KNOW TYPE OF SERVICE AVAILED

G.Nagaseshareddy

G.Nagaseshareddy (Querist)
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27 January 2015 man power supply sir

CMA MALHAR BEHERA

CMA MALHAR BEHERA (Expert)
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27 January 2015 In case of Sponsorship Services provided in Taxable territory RCM is applicable.
In this case service Receiver has to pay sevice tax whether both service provider and service receiver are corporate bodies.

CMA MALHAR BEHERA

CMA MALHAR BEHERA (Expert)
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27 January 2015 Supply of manpower has been brought into partial reverse charge mechanism vide Notification No. 30/2012-ST dated June 20, 2012 and made applicable, inter alia, to services provided or agreed to be provided by any individual, Hindu Undivided Family or partnership firm, whether registered or not, including association of persons, located in the taxable territory to a business entity registered as a body corporate located in the taxable territory.

Further, security service is also brought under partial reverse charge mechanism vide Notification No. 45/2012-ST dt. 7th August, 2012 under the category of supply of manpower or security service. In terms of the definition inserted vide Notification No. 46/2012-ST dt. 7th August, 2012 "security services" means services relating to the security of any property, whether movable or immovable, or of any person, in any manner and includes the services of investigation, detection or verification, of any fact or activity.

In terms of the Notification No. 30/2012-ST dated June 20, 2012, 75% of the service tax liability is required to be discharged by the service recipient i.e. Business entity registered as a body corporate for the above services and Balance 25% by the service provider.

G.Nagaseshareddy

G.Nagaseshareddy (Querist)
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27 January 2015 thank you very much sir for your immediate clarification

Guest

Guest (Expert)

27 January 2015 All the service tax shall be charged by service provider for manpower services provided by body corporate (Company or LLP). So in your case, recipient is not liable for service tax under RCM.

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