Reverse charge mechanism, Service Tax

[palaniappan thirukalathiappan]

Dear Experts,

I wish to know in reverse charge mechanisam, what is the %age of service tax payment to be done by SP & SR if SP & SR both are Pvt. Ltd organisations.

Posts / Replies

[Pradeep Khatri]

In this scenario, service provider will charge the service tax 100%, collect from service recipient and deposit into the Government's account.

[Ashwani Rustagi]

If the Service Provider is pvt. ltd. company than there is no service tax liability on SR under reverse charge mechanism.

[NK SHETE]

I do agree with the views of two experts.

[Ankur Agrawal]

for applicability for reverse charge mechanisam on supply of manpower, security services & renting and hiring of vehicles following two condion must be satisfied:

1. Service provider -: he must be individual, huf, parternship firm (registered/unregistered)

2. Service Receiver -: company registered under companies act.