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Reverse charge

Jagjeet singh (Audit) (110 Points)

14 December 2013

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

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8 Replies

Rohit Aggarwal (ACA Bcom (H) MBA MCom) (470 Points)
Replied 15 December 2013

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.

NOUFAL (ACCOUNTANT) (762 Points)
Replied 15 December 2013

Yes reverse tax mechanism is applicable there

Rohit Aggarwal (ACA Bcom (H) MBA MCom) (470 Points)
Replied 15 December 2013

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

VIKASH KUMAR JAIN (Audit Executive) (711 Points)
Replied 15 December 2013

Rohit is correct..........

Manoj BG (Tax Professional and in Service) (1795 Points)
Replied 15 December 2013

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

Ganeshbabu K (Audit and Tax Advisory) (48559 Points)
Replied 16 December 2013

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.