Service tax for recepient

Dear Club members & friends,

i have doubt regarding service tax. As per notification no. 30/2012-Service tax dated 20th June 2012, various services are now tax shared.

We in our govt. organization are recipient of two services :

1. Manpower.

2.Vehicle for carrying passenger.

Till now the provider was charging us the bill with service tax of 12.36%, but as of this notification the service tax is shared in specific proportion.

My first doubt is how shall we pay the service tax : either by just paying specific share of ours in bill to provider or do we need to have our own service tax number and pay it separetly.

second, diffrence between "carrying passenger on abated value" and "carrying passenger on non-abated value". We are govt org which are hireing services from private travel operators on specific rates decided o the basis of open tender.

i would be obliged to club for the help provided till date and forthon.

 

thanks & regards,

Replies (3)

In your case, you are not liable to pay service tax under reverse charge mechanism. This is applicable only to service receiver who is 'usiness entity being body corporate'

I completly agree with Mr. Ganesh.

Body Corporate is defined in section 2(7) of the Companies Act .

Body Corporate means:-

"As including a company incorporated outside India, but does not include-

a. Corporate Sole;

b. a co-operative society registered under any law relating to co-operative societies; and

c. any other body corporate (not being a company as defined in the Companies Act), which the Central Government may, by notification in the Official Gazette, specify in this behalf"

 

Agree with Mr, Ganesh this is applicable for Business entity being a body corporate .

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