Reverse charge mechanisum

316 views 2 replies

ashok

Accounts Manager

25 Points Posted on 13 January 2016

We are a private limited company we are receiving house keeping service from a pvt.ltd.company. In this case whether the reverse charge mechanism is applicable or no? If applicable can u pls tell me how much percentage divided. If u have any notification regarding this can u pls give the reference..

Replies (2)

ashok

Accounts Manager

25 Points Posted on 13 January 2016

Arpit verma

Indirect tax

1372 Points Posted on 14 January 2016

Reverse Charge Mechanism-Notification no. 30/2012

Supply of manpower or security services

As per Rule 2(g) of STR 1994 - “supply of manpower” means supply of manpower, temporarily or otherwise, to another person to work under his superintendence or control.
Services by way of supply of manpower for any purpose or security services.
Service provider may be an individual, HUF, partnership firm or AOP.
Service receiver should be a business entity registered as body corporate.
Service provider and service receiver should be located in taxable territory.
Liability of service receiver is 100% of the amount of service tax.
Not applicable when service provider is a body corporate.

if u r receiving the service from the pvt. ltd.

then as per my view, u r not liable for payment of service tax under reverse charge mechanism.