Income from maintenance services

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aishwaryanoorni

student

62 Points Posted on 17 July 2015

hello individual has the business of providing maintenance services and he has not registered the business as boby corporate and does the business with the pan which states his status as individual but he pays the service tax @ 75% for security service but i have the doubt whether an individual provides man power service to other person not a body corporate or company then also reverse charge mechanism is applicable.

Replies (4)

U S Sharma

glidor@gmail.com

21670 Points Posted on 17 July 2015

for service tax purpose, if an PAN is registered and obtained ST-2 on that PAN data , he is equally with all other assesees, no diff with corporates,

CA SACHIN

practice

152 Points Posted on 17 July 2015

No, reverse charge is not applicable if service receiver is individual.

Madhukar N Hiregange

Chartered Accountant

33545 Points Posted on 18 July 2015

First of all now for manpower supply and security it is 100%- reverse charge.In this case the individual or HUF or partnershipAOP provding services to a busienss entity which is a body corproate is exempted ( not 30/12 as amended)

Therefore if individual provides services to other individuals he would be liable if exceeding 10 Lakhs in pr yr or exceeding 10 Lakhs in cuurent eyar after 10 la.

aishwaryanoorni

student

62 Points Posted on 18 July 2015

In fy 14-15 individual has provided the service to other individual who carries on the business of providing maintenance service but he has not registered the business then reversecharge will apply.