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Regarding applicability of service tax for manpower supply

ravi (Articles) (29 Points)

02 August 2013

Sir

I have a doubt regarding applicabiity of Service Tax for Manpower supply consultants under reverse charges mechanism

how much i should quote the service tax portion in the invoice

should i collect 25% of 12.36 from the service receiver

or 75% of 12.36 from the service receiver

please clarify in this regard

Thanking you

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22 Replies

CA Kunal Mishra (Consultancy Service) (172 Points)
Replied 02 August 2013

Pls clarify the nature of entity providing & receiving services.

Rajiv (Senior Accounts Officer) (1548 Points)
Replied 02 August 2013

Manpower supply for any purposes or security services by individual, HUF, firm or AOP..

Prabhat Kumar (Advocate & Consultant) (1912 Points)
Replied 02 August 2013

If you are an individual providing service to a bussiness entity,then you are liable to pay 25% of the total taxable amount and you should charge only to this extent from the recipient of the service.

ravi (Articles) (29 Points)
Replied 02 August 2013

Service provider is an Individual

CA Kunal Mishra (Consultancy Service) (172 Points)
Replied 02 August 2013

Then you can follow advice of Mr.Prabhat Kumar

CA Chandrashekar L (Practicing Chartered Accountant) (245 Points)
Replied 02 August 2013

1.As Per Notification No.30/2012 RCM is applicable to Manpower Supply Service provided if service provider is Individual or HUF or Partnership Firm or AOP and the Service receiver is business entity registered as body corporate located in taxable territory.

2.Hence RCM is not applicable when service receiver is an Individual , Proprietorship firm , HUF, Partnership firm or a Society. (Since they are not considered has registered body corporate)

3.From the above since your are an individual being an service provider and if the service receiver in your case is person registered as body corporate I.e. Company or Cooperative Society than RCM will be applicable to your case.

4. If RCM is applicable then you are liable to pay ST @ 25% (i.e you have to charge) and service receiver's liability will be at 75%.

Thanks & Regards,

CA Chandrashekar L

tejpal (accountant) (23 Points)
Replied 19 February 2014

i want to know the turnover calculation -is turnover be only 25% for getting 10lac exemption or 100%

CH.MARUTHI RAM (TAX CONSULTANT) (69 Points)
Replied 23 April 2014

good evng chandrashekar garu,

my client is individual manpower supplier i.e. service provider and the service giver

my client paid service tax 3.09 % i.e.25% of servicetax on 12.36. my doubt is what is the notification number and serial number applied to this case.

please help me to file the return.

thanking you sir,

MARUTHI RAM CH

9949163342

CA Chandrashekar L (Practicing Chartered Accountant) (245 Points)
Replied 24 April 2014

Dear Maruthi Ram CH,

Serila Number 08 of Notification Number 30/2012-ST.

Thanks & Regards,

CA Chandrashekar L

1 Like

Umeshm Gudri (Article Student) (28 Points)
Replied 12 July 2014

Whether providing full time engineer for technical service is comes under man power supply?

Please Clarify

CH.MARUTHI RAM (TAX CONSULTANT) (69 Points)
Replied 13 July 2014

THANK U CHANDRASHEKAR GARU FOR UR SUPPORT,

MARUTHI RAM CH

9949163342

CH.MARUTHI RAM (TAX CONSULTANT) (69 Points)
Replied 23 July 2014

GOOD EVNG CHANDRASHEKAR GARU, I FILED SERVICE TAX RETURN 24.04.2014 FOR THE

PERIOD OF OCT 2013 TO MARCH 2014. TODAY IT IS OBSERVED THAT MY RETURN WAS REJECTED BY THE DEPT SAYING THAT " EDUCATION CESS RATE ENTERED IN PROVIDER SECTION (ADVLOREM) IS PAYBLE SHEET FOR THE SERVICE " MANPOWER RECRUITMENT/SUPPLY AGENCY SERVICE ' IS NOT VALID, AND SEC HIGHER EDU. CESS RATE ENTERED IN PROVIDER SECTION (ADVLOREM) IN PAYBLE SHEET FOR THE SERVICE ' MANPOWER RECRUITMENT/SUPPLY AGENCY SERVICE ' IS NOT VALID.

IN THIS REGARD MY DOUBT IS HOW MUCH RATE TO ENTERED IN THE MANPOWER RECRUITMENT/SUPPLY AGENCY SERVICE " MY CLIENT SAYING THAT 75% OF PAYMENT WAS PAID BY SERVICE RECEIVER BUT AS A SERVICE PROVIDER HAS TO PAY 25% ONLY. PLEASE CLARIFY ME SIR PLEASE

MARUTHI RAM CH

9949163342