Reverse charge

DEar

xyz ltd. take HR consultancy srvices to hier their managerial personnel Whether they are required to pay service tax as per new reverse charge mechnism

Replies (8)

Hello Jagjeet

 

XYZ Ltd. is not required to pay ST on reverse charge basis as this is a simple case of commissioning services and the HR consultancy firm/organisation will charge ST from XYZ ltd and pay it to the Govt.

 

Thanks.

Yes reverse tax mechanism is applicable there

Hello NOUFAL Can you please elaborate your statement with a reference to a case or notification?
Rohit is correct..........

Dear  jagjeet

Reverse charge will never been applicable on the kind of services you have mentioned. The service mentioned is purely in nature of Manpower recruitment service which is not within the list of service of services on which reverse charge mechanism applies.

 

Thanks and Regards,

Manoj B. Gavali

 

Originally posted by : Rohit Aggarwal
Hello NOUFAL

Can you please elaborate your statement with a reference to a case or notification?

Agree with opinion of NOUFAL

Surely they(service receiver) are liable to pay service tax under reversecharge -if he is individual or HUF and service receiver is company,he has to pay 25% service and balance 75% is payable by company.

“Supply of manpower” means supply of manpower, temporarily or otherwise, to another person to work under his superintendence or control.’ [Rule 2(g) of Service Tax Rules, inserted w.e.f. 1-7-2012].

Words Otherwise will gives support that Reversecharge applicable in this case 

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temporary or other wise--means permanant also

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However Person approaching himself and company appointing him on contract basis is not manpower supply service.

yaa reverse charge is applicable.. But what to do when HR Consulatcny has billed with full s.tax

Firstly is your biller a Company or firm or Propreity concern. If it is a company reverse charge is not applicable.

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