Reverse charge mashanism

Dear Yashwant Patel

Service receiver is liable to pay service tax under two situation. one under reverse charge and under joint charge. Your case fit under joint charge mechanism and in my opinion you may have pay service tax  of your portion ie 75 % in all the three situations.

In the above cases u have to pay 75% to govt & 25% to vendor. 

Dear All

IF the vendor is not registered service provider then 25% of st need not be paid to the vendor and 75 % alone needs to be paid to the Govt

Dear Mr. Patel,

Under Reverse Charge Mechanism (Notification No. 30/2012), the liability of the service receiver to pay service tax is independent of the liability of the service provider. In your case, since you are a body corporate and the service provider of manpower supply is an individual, you are liable to pay tax directly to the exchequer, tax on 75% value of the taxable service. As per Rule 7 of POT Rules, 2011 the point of taxation is the date of payment to the service provider. 

So, please don't be bothered about the taxability of service provider. However, he can charge tax on only 25% value of manpower supply service, only if he is a registered service provider.

Regards,

tax2001-it @ yahoo.com

thanx every one