Reverse charges on service tax

If the agency is not a company  then you are required to pay to the government 75%(ie;Service value*12.36%*75%) of the service tax on the service value irresepective of whether the service provider is registered or not or whether he gives tax invoice or does'nt give.   Under reverse charge the liability of service provider and the service receiver are independent and hence you have to pay service tax to the government.

can you give me the notification regarding this?

The question of applicability of service tax under RCM depends upon the nature of service provided and legal status of entity. As per Item No. 8 of the Notification No. 30/2012 dated 20.06.2012, the service tax in respect of manpower supply (temporarily or otherwise to another person to work under his superintendence or control) provided by individual, HUF, proprietary firm or partnership firm including AOP provided to a business entity registered as a body corporate is partially payable by service provider and partially payable by service receiver. However, if service is provided by body corporate then only service provider is liable to pay service tax.   

Assumption ;  Since from query, the nature of service provider and service recepient is not clear, it is assumed that agency is not a body corporate and service recepient is a registered as a company.

Conclusion: If the Agency's responsibility is supply labour/man power and the execution of work is the responsibility of Agency, then it does not come under Reverse Charge Mechanism. If the contractor responsibility is supply labour/man power and the execution of work is the responsibility of your company, then it is manpower contract. and accordingly, the service tax to the extent of 75% is payable by recipient of service and balance by service provider.

Note: If the contract is for doing/execution of works under the supervision of contractor and penalty is levied for delay etc then it is not covered under Manpower contract. Contract agreements need to be studied accordingly.

Thanks.

if service receiver is the firm and registered under Service tax, Conclusion is same or not?

Dear Sir,

Reverse charge main yadi provider ka registration nahi hai jo ki 25% of 12.36 ka tax provider kaise or kis a/c main submit karega, kya pahele use registration karwana hoga or phir submit karna hoga.

please clear my question.

thanks 

Regards 

chandan pandey

Chandan,

I am not able to understand your question clearly. But is established that Service receiver is liable for only his part and not entire amount, even if service provider does not charge his portion of service tax. Service receiver is not liable for servie provider's service tax liablity under RCM.

Reverse Charge Mechanism on Supply of Manpower for any purpose is applicable for below criteria:

1.Service Provider - Individual, HUF, proprietary or partnership firm, AOP

2.Service Recepient - Business entity registered as body corporate

As you have mentioned Maintenance work for apartments assuming you are not a body corporate RCM is not applicable

Dear Sir,

We Received  MANPOWER supply Service bill from non-company , they charged services tax @ 3.09%  on their bill, can we are liable to pay balance services tax   @ 9.27% to the department .

as we are registered under company act this year & we have not services tax registration due to we are registered under Haryana VAT as a trader .

kindly advise our liability for services tax ? if yes what is the process ...