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Reverse charge

Queries 802 views 1 replies

 

Im a body corporate and i am receiving man power services and liable under reverse charge. Suppose value of service is rs. 100 now if service provide is charging service tax on Rs. 100 instead of Rs. 25 than what is my liability. What will be my liability under reverse charge be discharged?
 
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Replies (1)

Mr. Hitesh Choudhary,

 

Under reverse charge mechanisam it is duty of receiver of service to pay service tax. So if service provider has charged service tax then also its your liability to pay S.Tax on 75% value of service.

 

However if service provider is body corporate then there is no liability of service receiver in case of Man Power Supply so in that case S.Tax charged by service provider is correct.


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