Upgrad
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

srinivas (consultanat)     16 October 2012

Service tax on corporate to corporate and indivisual on revr

dear sir,

Service tax applicabale to the pvt ltd providing services to corporte,  pvt ltd gets job done from indivisual sub contractors soursed to excute the service activity.

as the indvisuals are less then 9 lacs per annum turnover and not have the  ST independant registration,

as the pvt ltd company collects the full service tax from corporate and pays to governament

question is indivisual sub contractor payments on invoices attracts service tax,under this condtion liabality lies in indivisual

or exmpted

 

pl revert with clarification on reverse mechanisam status

 

regards

 

Dr srinivas



Learning

 1 Replies

NARAYANAN.P.POTTY (ADVOCATE)     26 November 2012

AS PER REVERSE CHARGE MECHANISAM WHEN AN INDIVIDUAL OR PARTNERSHIP FIRM PROVIDE SERVICE TO CORPORATE ,THE PRESCRIBED PERCENTAGE OF SERVICE TAX IS  TO BE SHARED BY THE SERVICE RECEPIENT CORPORATE.WHEN A CORPORATE PROVIDE SERVICE ,SERVICE TAX LIABILITY WILL BE ON CORPORATE.WHO PROVIDE SERVICE.

IN THE PRESENT CASE SINCE THE SERVICE PROVIDING INDIVIDUALS ARE BELOW THE THRESHOLD LIMIT (EXEMPTION LIMIT),THE ENTIRE SERVICE TAX LIABILITY WILL BE ON CORPORATE SERVICE RECEPIENT.


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register