Dear Sir,
Some service providers provide manpower services to our company but they are not registered under Service Tax Act as their turnover is less than 10 lacs., but as per new rules we have to pay service tax recever's share for the same
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Service tax
Replies (4)
Dear Mr. Kuldeep,
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Kindly note that under the reverse charge mechanism service receiver have to register himself under service tax. Section 68(2) of the Act does not provide Threshold exemption of 10 Lakhs in case of Reverse Charge mechanism where service tax is payable by person other than service provider.
So he has to pay even on few rupees of service received and have to file service tax return on prescribed interval.
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But if service provider is come under exemption limit of 10 Lakh rupees he has not to require register himself in service tax & not paying service tax under reverse charge.
agreed with varsha
Varsha's opinion is correct.
The opinion is correct. However, here individuals, HUF, partnership firms, association of persons shall be the service provider and the service receiver shall be an entity registered as a body corporate for partial reverse charge to apply.
The above concept is not applicable in case, the aforesaid service is provided by a Company i.e. Company would have to pay entire tax of 100% and recipient would not required to pay.
pls mail at kruti.ca87 @ gmail.com for any further queries on service tax comprehensice list regime.
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