Am a Man Power Supplier for Tamilnadu Government departments. I have Annual Turnover of around ₹ 10,00,000 PA. Who will pay the Service Tax? Me(SP) or Tamilnadu Government(SR)?
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You will pay ST because Service Receiver is not a business entity body corporate.
Secondly please ensure that you are actually Man Power Supply Agency as per erstwhile definition under Section 65(105)(K) of the Finance Act.
I agree with the views of Sri Kasturi Sir. Further the service is not enumerated in exemption notification.
Also the small scale exemption to be considered
Am Supplying Man Power for Madurai Corporation and Milk Producers Cooperative society. Should i pay Service tax? If i should how much should i pay?
Both are not body corporates. Hence 100% liability of ST on you.
But the Government pays only limited wages for the employees. Still should the Service provider pay 100% Service tax?
No link with limited wages of employees. There is no doubt that liability of ST is cast on you.
Till 2012 the service provider should pay 25% and service Receiver should pay 75%. After that according to Reverse charge Service receiver should pay 100%. When did it become 100% for Service provider?
RCM is applicable only when Service Provider is Individual/Partnership/HUF/Proprietorship firm etc. and Service Receiver is business entity registered as Body Corporate. Even now 100% (w.e.f 1.4.15) ST is to be paid by SR if receiver body corporate. In your case SR is not body corporate so 100% liability on SP w.e.f. 1.4.15. Had you provided manpower to Ltd. Company, BSNL etc. they would have to pay 100% ST and NOT you.
You are required to pay ST because you are not eligible for the facility of RCM.
Am an Individual Labour Contractor (SP) providing Man Power Supply for all Government departments (SR). In such case who should pay the Service tax?
As already explained, Govt. department is not body corporate, so liability is on individual labour contractor.
As you are providing service to non-body corporates, RCM is not applicable and you being the service provider are liable to pay 100% Servcie tax on the taxable value of services. The views expressed by the experts are absolutely correct and you have to follow accordingly.
Best option is to treat the gross receipts as cum-tax as provided under Section 67 (2) of the Finance Act. Govt. would not pay or reimburse the amount of ST to be borne by you. There is no other any sort of relief in terms of ST law.
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