Service tax query

As per the GTA service, a manufacturer is liable to pay service tax at the applicable rate on 25% of the amount paid to the transporter. But there are few exemptions available for the said service. The said exemptions are as under:- 1) When the cost of the individual consignment is less that Rs 750/- or 2) When the cost of the full consignment is less than Rs 1500/- or 3) When the transportation is in relation to agricultural produce. Now as per my understanding there is a default from your side so immediately you need to take registration and after assessing your actual liability for the past years pay such tax including appropriate interest for delay in payment of such tax. For receiving manpower from a non limited company, it is immaterial whether the turnover of the said contractor is less than Rs 10 lac or not. W.e.f 01-07-2012 the liability to pay service tax for receiving supply of manpower service is to the extent of 75% of the value of the bill. Hope you are clear on your query now.

If someone has provided some technical services to our company before 1.7.2012, and he was exempted (under 8lacs) then also are we liable for paying service tax under reverse charge mechanism?

Only services in relation to supply of manpower, rent- a cab, Works Contract, services received from Govt authorities, GTA are specified as taxable under reverse charge, provided that the specified conditions for each service are satisfied. For technical service, no Stax is to be payable under reverse charge.

Is reverse charge mechanism applicable for Business Auxilliary Services i.e. production or processing of goods for, or on behalf of the client or Job work ??

Job work amounts to manufacture of excisable goods/semi-finished goods.

What is the tax liability of the recepient if service provider is an SSI(<8lakh turnover) and does not charge service tax? OR is it totally exempt because ultimately there is manufacture and excise is charged?

There is no turnover exemption for services taxable under reverse charge, wherein service tax is to be paid by the service receiver. Now if the said service itself is exempted from service tax there will be no liability even for the service receiver. There is no such service called BAS wef 01-07-2012. Reverse charge is applicable only for the services which was mentioned by you on the earlier occasion.

Does Job Work (by giving excisable material to contractor) for manufacturing end product which is also excisable subject to Service Tax on reverse charge mechanism? or does it get clubber under manpower or works contract?

The exemptions available earlier incase of BAS is still present vide mega notification. So, if your transaction was earlier exempt under BAS then now also it will be exempt.