Manpower supply ser tax registration -reg, Service Tax

[venkat eswaran]

Dear All,

We are service receiver for Manpower supply thro 1 contractor. This contractor was not registered in ser tax and NO ser. tax number so far Since we are paying 100 % ser tax under reversal mechanism. Now the transaction amount crossed 10 lakhs in current year 2016-17.

Whether we can allow him further without registering in Ser Tax dept?

So far we have not insisted Ser Tax No. since we are paying ser tax 100% .

Whether we face any problem from central excise since we are taking this ser tax credit every month

Kindly clarify and give your views

Thanks in advance

Venkat

Posts / Replies

[Ganeshan Kalyani]

There will not be any problem on the part of service provider, subject to he is an individual , HUF, firm and receiver of service is a body corporate . the full liability of paying service tax is cast on the recipient of the service and therefore the service provider is exempted from taking registration and paying tax. thus there is no issue , if he doesnot take registration because it is your responsibility to pay the tax.

[Gorantla Bhaskar Rao]

Dear all,

So long as the Contractor is Individual, partnership firm, HUF and you are the body corporate, the liability to pay 100% Service Tax rest on you being the service receiver under reverse charge mechanism and your taking service tax credit on the same doesn't pose any problem to u.