Service tax payment on man power supply

Dear All,

 

Please clarrify my doubt!

 

1 . one of our manpower supplier raised bill of Rs 60,000/- 

Service provider has to pay service tax on 15000 @ 12.36%

service receiver has to pay service tax on 45000 @ 12.36%

 

Is it correct?

 

2. When service receiver have to remitt the money 

a  at the time of bill entry in the books of accounts of service receiver

or 

b. or at the time of payment made to service provider 

Replies (3)

Please clarrify my doubt!

 1 . one of our manpower supplier raised bill of Rs 60,000/-  Service provider has to pay service tax on 15000 @ 12.36% service receiver has to pay service tax on 45000 @ 12.36%.

Is it correct? ?Yes you are correct.

2. When service receiver have to remitt the money

a  at the time of bill entry in the books of accounts of service receiver or 

b. or at the time of payment made to service provider 

Whichever is earlier. Suppose you receive the bill on 10th Oct 2012 for the month of Sept 2012, then by 5th of Nov, you will have to make the ST payment.

Regards

Anandan.s

 

Yes it is correct.

As per recent S.Tax changes, Service receiver liable to pay 75 % and service provider liable to pay 25% in case of Supply of Manpower including security.

 

To Mr. Aluka

1. Yes Your Tax Calculation is correct

2. Service Tax due in month in which Bill is raised or payment is made, whichever is earlier

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