I am having a query friends. There's a construction company providing works contract services to airport. These services are exempted from service tax wide Point no. 14 of not. no. 25/2012 dt. 20.06.2012. Such construction company is also receiving services of manpower recruitment from another agency. It will be chargeable to service tax and construction company is required to pay RCM. It can't avail cenvat benefit of service tax paid. Now whether there is any alternative to save this service tax or not?
Thanks in advance friends
Menu
Works contract
Replies (3)
1. Please Note that w.e.f. 01-07-2012, reverse charge is applicable only in case of supply of Manpower service. Earlier, the classification was Manpower Recruitment and supply but now the manpower recruitment is not covered under the new definition of 'Supply of Manpower' and therefore reverse charge not applicable.
2. If the service provider of manpower supply is a body corporate, then reverse charge is not applicable.
Kindly contact for further clarifications.
Sir, I just want to know what's the basic difference between supply of manpower service and manpower recruitment and supply????? Thanks in advance sir....
Manpower Recruitment is similar to placement agencies who recruit employees for there clients. In manpower supply, a person is employed by one person and the work is performed under the control and superintendence of other person.
Recent Topic
- Unable pay Self Assessment Tax - Netbanking and De
- Section 192 2(b) entry in IT return ITR 1
- Rent from redevelopment property
- How to find FMV of inherited gold after selling it
- Happy CA Day!!
- Share your proudest CA moment 🏆
- Gift recd from brother
- How to show Loan write off in DPT 3?
- Form 10E and Salary arrear
- LTCG U/S 54F. Sale of property plus sale of share
Related Topics
CAclubindia
