Reverse charge under service tax

Others 1703 views 5 replies

CA Manish

Job

5264 Points Joined December 2010

S.N.	SERVICES	% OF SERVICE TAX BY SERVICE PROVIDER	% OF SERVICE TAX BY SERVICE RECEIVER
1	Insurance business	Nil	100
2	GTA	Nil	100
3	Sponsorship	Nil	100
4	Arbitral tribunal	Nil	100
5	Individual Advocate	Nil	100
6	Support Service by govt. or local authority	Nil	100
7	i] Renting of motor vehicle for passenger on abated value ii] on non abated value	Nil 60	100 40
8	Supply of manpower or Security Services	25	75
9	Work contract	50	50
10	Non taxable territory to taxable territory	Nil	100
11	Service provided or agreed to be provided by director of company to the said company	Nil	100

The scheme of partial reverse charge has been introduced for three services where the service provider is either an individual or HUF or partnership Firm or LLP or association of person and a recipient is corporate.[ Point No. 7,8,9 of the Table]

Replies (5)

CA Ayush Agarwal

Kolkata-Pune-Mumbai

27454 Points Joined October 2007

This Case may Arise:-

If Service Provider is Corporate,

and Service Receiver is Individual/Firm.

& Say, On That Service, Reverse Charge is Applicable,

Then Also Individual/Firm Need to Pay service Tax By Getting registered Under service Tax Act , Provided Individual/Firm Turnover Sales Exceed 10 lacs.

Otherwise Corporate Need to Pay Service Tax.

CA Manish

Job

5264 Points Joined December 2010

For which service this is applicable?

CA Ayush Agarwal

Kolkata-Pune-Mumbai

27454 Points Joined October 2007

Originally posted by : CA Manish Malu
	For which service this is applicable?

CA Manish

Job

5264 Points Joined December 2010

Security Service comes under supply of manpower service and for this reverse charge is applicable if

provider is

i) any individual

ii) HUF

iii) Proprietary firm

iv) partnership firm

v) Association of Persons

located in the taxable territory

and receiver is

i) Any company registered under the Companies Act

ii) business entity registered as body corporate

located in the taxable territory.

Therfore is a Company is provider it wont come under reverse charge so provider has to pay 100%.

Souvik Kumar Ghosh

CA Final

1368 Points Joined March 2011

Originally posted by : CA Manish Malu
	Security Service comes under supply of manpower service and for this reverse charge is applicable if provider is i) any individual ii) HUF iii) Proprietary firm iv) partnership firm v) Association of Persons located in the taxable territory and receiver is i) Any company registered under the Companies Act ii) business entity registered as body corporate located in the taxable territory. Therfore if a Company is provider it wont come under reverse charge so provider has to pay 100%.