Service tax reverse charge

G.S.R. (E).- In exercise of the powers conferred by sub-section (2) of section 68 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.30/2012-Service Tax, dated the 20^th June,2012,  published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i),  vide number  G.S.R.  472 (E), dated the 20^th June, 2012, namely:-

In the said notification,-

(a)  in para I, in clause (A),-

(i) after the sub-clause (iv), the following sub-clause shall be inserted, namely :-

“(iva)   provided or agreed to be provided  by a director of a company to the said company;”;

(ii)  in sub-clause (v), after the words “manpower for any purpose”, the words “ or security services” shall be inserted.

(b)  in para II, in the Table,-

(i)   after Sl.No. 5, the following S.No. and entries shall be inserted, namely:-

(ii)  in Sl.No. 8, in the entries under the heading ‘Descripttion of a service’, after the words “manpower for any purpose”, the words “or security services” shall be inserted.

RECENT AMENDMENT IN INCOME TAX ACT,1961 THAT ANY SUM PAID THAT MAY BE REMUNERATION OR SITTING FEES THE TAX DEDUCTION AT SOURCE TO BE MADE UNDER SECTION 194J OF THE INCOME TAX ACT AND IT'S NOT TO BE DEDUCTED UNDER SECTION 192.SO SIMPLE THAT OUR GOVERMNET DOES NOT WANT TO INTERPRET THE RELATIONSHIP OF THE DIRECTOR AND COMPANY AS THE EMPLOYEE AND EMPLOYER RELATIONSHIP..........

NOW THE CONCERNING THE SERVICE TAX AND MORE WITH THE ABOVE NOTIFICATION ........... IT'S GOOD ONE FOR THE DEPARTMENT OF THE REVENUE......BUT IT'S GOING TO BE DIFFICULT FOR THE COMPANIES ...........

EVEN THE LIMIT OF 10 LACS IS NOT GOING TO BE APPLICABLE IN THIS CASE AS IT IS REVERSE CHARGE..........SO EVEN 1RS IS PAID AS REMUNERATION THEN THE COMPANY HAS TO PAY THE SERVICE TAX ON THE SAME........

EVEN WHAT I FEEL AND UNDERSTAND THAT THIS NOTIFICATION IS LACK OF CLARITY........THAT'S WHY IT WILL CREATE MORE PROBLEMS FOR BOTH DEPARTMENT AND ASSESSEES.............THAT'S FOR SURE.............

Suppose Mr.ABC pvt ltd  receives Rs. 2500/- for providing a service to DEF pvt ltd. on which service tax is to be payable by service receiver is Rs 3,090 but  already we have a CENVAT input RS 7,000. so can anyone please explain me we have to pay this 3090 or else we can minus this 3090 in 7000 ???????

Thanks in advance