Service tax on receipt basis

Hello..

One of our Individual Client providing service under work contract and manpower supply. His previous year turnover was below 15 Lac and this year also his turnover is 14 Lac.

Can he pay service tax on receipt basis considering  inabove mentioned service he is taking benefit of abatement?

Please share your views with notification if any.

Replies (1)

1) In relation to manpower supply service provided by individual, huf, partnership firm to body corporate , Service receiver is required to pay 100% service tax as per ammnedment by Finance Act 2015.

2) In relation to service provided in work Contract 50 % each is to be paid by SR and SP.

3) As mentioned in your query that services provided in previous FY does not exceed 50 lakhs, service provider can pay Service Tax on Payment Basis.

I hope it solves your query.

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