TMI BlogReverse charge on manpower supplyX X X X Extracts X X X X X X X X Extracts X X X X ..... Our company has hired an employee through a recruitment agency on which he has not charged any service tax. Whether reverse charge would be applicable or not. - Reply By KASTURI SETHI - The Reply = Yes. 100 % ST is to be paid by Service Receiver Company. - Reply By Rajagopalan Ranganathan - The Reply = Sir, As per Sl. No. 8 of Notification No. 30/2012-ST dated 20.6.2012 as amended in re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spect of services provided or agreed to be provided by way of supply of manpower for any purpose or security services 100% service tax is payable by receiver of the service. Hence you are liable to pay service tax under reverse charge mechanism. - Reply By Raj Malik - The Reply = My colleague is saying that reverse charge will not be applicable since employee is hired on full time basis and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also he is under our control we have not hired him on contractual basis. So service charge laibility would be applicable or not. - Reply By KASTURI SETHI - The Reply = It is crystal clear from your query that hired person is under supervision and control of the Company. Hence taxable. Can you prove by virtue of any agreement/contract that hired employee is not under supervision and control o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Co. ? - Reply By Raj Malik - The Reply = yes, employee is under the supervision control of company. would reverse charge be applicable - Reply By KASTURI SETHI - The Reply = It is the mission of TMI and experts to convince querists and save them from rigours of litigation and heaving expenses thereof. It is yeoman's service by TMI in this materialistic world. It is rare. - Reply By M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ARIAPPAN GOVINDARAJAN - The Reply = It amounts to manpower supply despite the fact that they are under your supervision. Further they are not your employees. - Reply By Pankaj Sarkar - The Reply = Please comments: Work Order is issued to Supplier ( Individual) for construction of Building without Material through Work Order . Total Invoice value ₹ 920655.00. My Query. 1. Is it Pure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Labour contract ???? 2. He has not claimed Service tax. 3. Is there any abatement? 4. RCM is applicable or not? 5. Whether company is liable to pay S Tax ( 920655*15%) ₹ 138098.00. Or basis on RCM??. 6. If Value came to ₹ 1200000.00, what will be the treatment of s tax. 7. If possible please show the calculation in both cases. Thanks In advance Pankaj - Reply By Ramaswamy S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - The Reply = Dear Mr Raj- Service Tax is applicable on manpower on reverse charge mechanism as other experts have opined. Regards, S.Ramaswamy - Reply By Ramaswamy S - The Reply = Dear Mr Pankaj, Here the contract is for the construction of building and not for manpower. Further, the contractor may not be a person providing the services of manpower supply. It falls under the category of con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... struction services and the service provider is liable for service tax. However, more details are required to suggest/opine. Regards S.Ramaswamy - Reply By KASTURI SETHI - The Reply = Agreed with Sh.S.Ramaswamy, Sir. Further query-wise reply is as under:- 1. Yes. 2. Wrong. 3.No 4.No. 5.No, being pure labour and pure labour cannot be classified under WCS. 6. ST on labour charges - Repl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y By Pankaj Sarkar - The Reply = Dear Sirs, We know that in case of Pure labour ,RCM will not atract, then what will be the tax treat for service receiver ( Individual) : i. If Service provider do not have the service tax registration and not claimed in Bill also. Whether service tax is required to pay at all to the department?? If required then full 15% will be paid to department, is it c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orrect ?? ii. If service receiver have the registration and claimed , how much is to paid to him?? Thanks in advance Pankaj - Reply By Rajagopalan Ranganathan - The Reply = Sir, If the service provider has no service tax registration and he did not charge service tax on you, the reason being that his total turnover during previous financial year is less than 9 lakhs and he will not take a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... registration. if the service provided by the service provider is not covered by Notification No. 30 of 2012-ST dated 20.6.2012 as amended then service receiver is not liable to pay the service tax under reverse charge mechanism. - Reverse charge on manpower supply - Query Started By: - Raj Malik Dated:- 20-3-2017 Service Tax - Got 13 Replies - Service Tax - Discussion Forum - Knowledge Shari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng, 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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