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Service tax payment on man power supply

Akula Srinivas (Accounts Officer) (59 Points)

13 October 2012

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

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

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3 Replies

Anandan (HOD accounts) (502 Points)
Replied 13 October 2012

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

RADHAKRISHNAN J (Asst Manager-ACCOUNTS) (25 Points)
Replied 02 November 2012

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.