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Service tax reverse charge mechaism

swetha (Finance Manager) (140 Points)

28 November 2012

Ours is a Private Limited Company and registered with Service Tax as Service Provider.

We are receiving services from Manpower and Security service. Now under Reverse charges Mechanism,

1. Whether we have to register under manpower and security service as SERVICE RECEIVER?

2. If so, whether we have to get a fresh registration certificate for the above mentioned services as service receiver or we have to amend the existing service provider Registration Certificate.

Kindly advice.

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8 Replies

Anandan (HOD accounts) (502 Points)
Replied 28 November 2012

@ swetha.. you need not amend your existing s.t.registration of manpower and security services as service receiver. Also there is no such service under the reintroducted positive list of services.

Regards

Anandan.s

swetha (Finance Manager) (140 Points)
Replied 28 November 2012

I think u are wrong.

Under Reverse charge mechanism Service Provider has to pay 25% and Service receiver has to pay 75% for Manpower and Security services. In that case we have to pay 75%.

swetha (Finance Manager) (140 Points)
Replied 28 November 2012

I think u are wrong.

Under Reverse charge mechanism Service Provider has to pay 25% and Service receiver has to pay 75% for Manpower and Security services. In that case we have to pay 75%.

Anandan (HOD accounts) (502 Points)
Replied 28 November 2012

@ swetha, Mam, I have no where mentioned andy %'s?

Regards

anandan.s

swetha (Finance Manager) (140 Points)
Replied 28 November 2012

Dear Sir,

You said not to amendment the existing RC. Without amedment or fresh registration as service receiver, how we will pay the 75% of Service Tax. Please explain

swetha (Finance Manager) (140 Points)
Replied 28 November 2012

Dear Sir,

You said not to amendment the existing RC. Without amedment or fresh registration as service receiver, how we will pay the 75% of Service Tax. Please explain

Anandan (HOD accounts) (502 Points)
Replied 28 November 2012

@ swetha, you can pay the tax using the following accounting head; 00441089- Taxable service, 00440298 for Primary Edu.cess and 00440426- for SHEC, as per the accounting code introduced during the negative list regime. Me too was having old s.t. registration for Business Auxillary service and GTA. After the introduction of Negative list regime, I had consulted our consultant who had advised me that, there is no need to amend the existing S.T.Registration certificate. Hope you are convinced.

Regards

Anandan.s