Reverse charge

No liability under reverse charge for the firm receiving. Deamnd maybe made on the service provider that he is to pay + interest + penalty.

For Manpower Supply Service, reverse charge is applicable if the service receiver is a body corporate. So, in the above case, 100% service tax is to be paid by the service provider after availing baisic exemption benefit of Rs. 10 Lacs, if available. The department may raise demand for differential tax and levy interest and penalty.