Abatement in manpower services

abatements 11949 views 5 replies

respected sir.

my query is relating service tax abatement regarding manpower services

howe much percent  company have to pay government and how much to service provider.

and what about credit availment

Replies (5)

It is reverse tax mechanism. Service provider 25% and service receiver 75%. Cenvat credit is admissible if it relates to manufacture of dutiable goods or providing of taxable services.

Sir

How much input credit is claimable in such a case by the Service Receipent.  And If the Service Provider is an individual who is under exemption within 10 L limit

 

If the service provider is exempted from charging service tax, you pay 75% to Govt.

The payment is to be made in Cash and not through cenvat credit utilisation.

But once you pay in cash, then you can avail cenvat credit.

Regards,

Yes,  under reverse charge mechanism, the basic exemption of  threshold limit is applicable only to service provider and not to service receiver.  He has to pay under separate challan and set off in other output services.

Dear Sir

             agreed service receiver has to pay 75%. and service receiver can avail the credit of the same. Now the same credit can be utilised against service tax payable on manpower (75%) next month ?


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