TMI BlogInformation about Applicable Service Tax....X X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Team, We are about to start Human Resource deployment and management services to the local units of manufacturing and service industry under a registered firm name Bigroof Management Services Pvt.Ltd.,Kindly provide applicable taxation details.Your help would highly be appreciated. - Reply By Rajagopalan Ranganathan - The Reply = Gentlemen, It appears from you narration the servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to be provided by you will fall under the category Management or Business Consultant's Service . It will attract service tax @14%. - Reply By Bigroof Management Services - The Reply = Dear Sir, Thanks for your earliest response.I am still confused who should pay the service tax whether the employer who makes contract agreement with us to obtain Human Resource Service or the contracting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... firms like us.If you could provide your contact number I would be very happy to contact you in this regard. - Reply By CA Sumit Aggarwal - The Reply = Gentlemen, I am inferring from your query that the company is a Pvt. Ltd. company and you will do recruitment consultant business in this case you will charge service tax in your bill to your client. Further, you will collect the service tax fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m its clients and its you liability to deposit the same on account of service tax with the department. Further, as you mentioned that you are about to start the business; hence you may avail the benefit of threshold limit of ₹ 10 lacs. Thanks!! - Reply By Rajagopalan Ranganathan - The Reply = Sir, Since you are providing Resource deployment and management service liability to pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... service tax is on the service provider. If you are a new service provider who is providing the service for the first time you can avail small scale exemption provided if your turn over is not likely to exceed the limit of ₹ 10.00.000/- during the current financial year you need not pay service tax up to the value of ₹ 10.00,000/-. For this purpose you have to file a declaration with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... your Range Officer. Beyond that you have to pay service tax @14%. For next financial year you have to pay service tax from 1st April since you had crossed the limit of ₹ 10,00,000/- during previous financial year. - Reply By Bigroof Management Services - The Reply = Dear Sir, With your informative reply I could clearly understand that being the service provider our firm is li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able to pay service tax.To elaborate more on this our billing structure would be like this.Suppose we provided 200 employees to a manufacturing firm under our payroll with an average salary of ₹ 8000/-PM,I would present a month bill of 200 x 8000=Rs.16,00,000/- and 8% Service charge which amounts to ₹ 1,28,000/- totaling Rs.17,28,000/- to the service receiver.Please educate us wheth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er we have to pay 14% service tax to 16,00,000/- or to 1,28,000/-.Please feel free to provide other inputs relating to exemptions and deductions as we are very new to this. - Reply By B. Naga Rami Reddy - The Reply = Sir, Service Tax is to be paid on ₹ 1728000,(i.e on ₹ 1600000+128000). Who will pay the service tax whether the service provider or receiver will depend on the status ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the service provider as per the contents of the Notification No.30/2012-ST - Reply By Rajagopalan Ranganathan - The Reply = Sir, As per Section 67 (1) (i) of finance Act, 1994 service tax chargeable on any taxable service with reference to its value shall. in a case where the provision of service is for a consideration in money, be the gross amount charged by the service prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ider for such service provided or to be provided by him. Therefore you have to pay service tax @14% on ₹ 17,28,000/- . With due respects to the views of Mr. B. Naga Rami Reddy, in my opinion you are liable to pay service tax and RCM procedure is not applicable to you. - Reply By B. Naga Rami Reddy - The Reply = Sir, I agree with the views of Shri Rajagopalan Sir as the service is provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded by a Pvt Ltd company. - Information about Applicable Service Tax.... - Query Started By: - Bigroof Management Services Dated:- 4-7-2015 Service Tax - Got 8 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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