Service tax

Queries 590 views 2 replies

CA sanjeev goyal

senior excutive

100 Points Joined November 2011

DERA FRIENDS,PLS RESLOVE THIS QUERY

With reference to the Service Tax notification 30/2012(which can be viewed on https:\\www.servicetax.gov.in/st-notfns-home) i want you expert opeinion or explanation.

whether if the service provider is BODY CORPORATE (Pvt Ltd Co.) and receiver is 1) Individual and 2)b Body Corporate ,then this amendment will be applicable or not? Such Body Corporate who is Service providing will liable to make the Payment of Service Tax 25% only or not?

Please ans the Query as soon as possible.

Regards

Manish Saxena

9310980862

3. Three services are being prescribed under notification no. 15/2012-ST in respect of which both service provider and service recipient will be considered as person liable to pay the service tax on the basis of a fixed percentage. This amendment will be applicable only where the service provider is an individual/firm/LLP and the recipient is the body corporate. The services and portion of service tax payable by provider and recipient of services are as follows:-

S. no.	Descripttion of Service	Service Recipient	Service Provider
1	Hiring of motor vehicle for passengers – ++ with abatement ++ without abatement	100% 40%	NIL 60%
2	Supply of man power	75%	25%
3	Works contract	50%	50%

Replies (2)

Dipjyoti Majumdar

CA in service & CS. dipmaj@

3489 Points Joined June 2011

With reference to the query raised by Sanjeev, I have some doubts on this issue.

From 1st July 12, service receivers receiving manpower service from service providers are liable to pay output service. My question is : A company used to receive service from 2 providers during last 2 years. One of them used to charge service tax and other did not probably due to fact that its turnover is less than 10 L.

Now under present regime, is the receiver of service liable to pay tax on both cases.

Please guide.

Regards,

Ajit kumar Dubey

Taxation Manager

637 Points Joined September 2008

Abatement is for all assessee whether individual or a Corporate assessee. The liability to pay service tax will depend upon the status of the company, whether a limited company or not. Even if abatement is taken by the service provider, the service receiver is liable for 40% of the remaining service tax liability. Also for a recipient of service, the turnover exemption is not to be taken into consideration. When the service tax liability is on reverse mechanism, service receiver has to discharge proportionate service tax liability which he is entitled to.Hence, no exemption for a service receiver, even though the service provider is not liable to service tax based on turnover exemption.