New User   Login      
Tax Management India .com TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

Service Tax under reverse charge

Service Tax - Started By: - Bhuwan Joshi - Dated:- 11-6-2015 Last Replied Date:- 4-11-2015 - Dear Sir,A partnership firm received bills from manpower supplier indicating 75% service tax liability of the service recipient. The partnership firm deposited this tax and availed service tax input credit for the same.Later on the error came to notice that partnership firm was not liable to pay . In fact service provider was liable to pay service tax.Please answer the following questions.1- Can departme .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Section 68(1)[2] confers liability to pay service tax on service provider and section 68(2)[3], which has overriding effect over section 68(1), confers liability to pay service tax on the receiver of such taxable service as notified by Central Government. The reverse charge mechanism (RCM) was first introduced effectively from 01-01-2005 vide Notification No. 36/2004-ST dt. 31-12-2004 read with Rule 2(1)(d) of Service Tax Rules, 1994. With effect from 01-07-1012 a new mechanism of reverse charg .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

mption of ₹ 10 lacs is available to Service Receiver (SR) as this exemption is available to Service Providers only. (refer NN 33/2012-St dt. 20-06-2012) 3. Service Receiver is liable to pay service tax under this mechanism from very first invoice received under this category. It means SR is liable to pay ST even when SP is within the ambit exemption limit under NN 33/2012-ST. 4. This service tax liability has to be met in cash i.e. no Cenvat Credit facility is available to meet out this li .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s falling under full RCM, will not be able to take Cenvat Credit of ED & ST in respect of input / capital goods and input services respectively. 5. Service Receiver is liable to discharge service tax liability under Rule 7 of Point of Taxation Rules, 2011 (NN 18/2011-ST as amended by NN 25/2011-ST, NN 41/2011-ST, NN 4/2012-ST and NN 37/2012-ST) 6. In case of Service Providers (SP) rendering the services all of which falls within the ambit of complete reverse charge mechanism; he cannot avail .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t 75% under rcm, then you may defend the case accordingly. - Reply By YAGAY AND SUN - The Reply = Dear All, We are unable to understand both replies shared by IDT Experts. Please be specific.RegardsYAGAY and SUN(Management, Business & Indirect Tax Consultants) - Reply By Rajagopalan Ranganathan - The Reply = Sir, Prior to 1.4.2015 in respect of man power supply service 25% of the service tax is to be paid by the service provider and 75% of the service tax is to be paid by the service receive .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version