Vendor often renders various services, sometime supply labours for any specific work.
1. if vendor levy 100% of ST in his invoice for labour supply, what should recipient do as this is reverse charge case?
Vendor often renders various services, sometime supply labours for any specific work.
1. if vendor levy 100% of ST in his invoice for labour supply, what should recipient do as this is reverse charge case?
CA Sandeep Soni
(Chartered Accountant)
(55 Points)
Replied 20 August 2013
1) Service Receiver has to pay his portion of service tax under reversed charged. 100% ST levy and payment by service provider can not escap service provider from his liability.
2) Excess levy by service provider has to claim under ST.
Nirav Worah
(CHARTERED ACCOUNTANT)
(396 Points)
Replied 20 August 2013
DIBYENDU
(SERVICE)
(266 Points)
Replied 22 August 2013
Prerequisite of Manpower Supply Service is the engage manpower works under the hole direction & supervision of principal employer, if you give a contract to the contractor to perform specific duties, designed by the client. so, that labour worked under the direction of contractor. then the service of the contractor treated as not a 'manpower supply service' but as a 'business auxiliary service' which is beyond scope of RCM.so, I advice you to change your order & request to service provider to change his submitted invoice to the nature of job work .So, you that you relief from your liability under RCM.
CAclubindia
