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TMI BlogLabour SupplyX X X X Extracts X X X X X X X X Extracts X X X X ..... Sir am a labour contractor supplying labours for the government without material. I receive only minimum wages. Who should pay the service tax for the wages i receive? - Reply By Himansu Sha - The Reply = Perhaps the issue was discussed in issue id 111832 - Reply By KASTURI SETHI - The Reply = RCM is not applicable. You are to pay 100 % ST. Govt. is neither a business entity not body corpora ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te. - Reply By Ganeshan Kalyani - The Reply = Yes the issue was discussed in detail. The querist should understand reverse charge is applicable only if the conditions as prescribed in the Notification No. 30/2012-ST as updated from time to time is satisfied. If the condition is satisfied then service provider is not liable to pay tax but the receiver of service shall pay as if he is a serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice provider. In the situation mentioned by the querist the condition for reverse charge is not satisfied hence reverse charge provision is not applicable so service provider is liable to discharge service tax. Now the proportion of service tax payable by the service provider is what querist is concern about. The querist should understand that Government has prescribed that 15% Service tax (includ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing sbc and kkc) should reach the government kitty. Reverse means the liability of 15% was divided in a proportion that 75% was payable by service receiver and balance 25% payable by provider of service. Now after 01.05.2015 the proportion was set aside and provider of service was relieved from the duty of paying his portion of service tax i.e. 25% tax shall also be paid by service receiver which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... means service receiver has to pay 100% tax . Now this method is applicable only when the condition of reverse charge is satisfied , as mentioned above. If the condition are not satisfied then service receiver is not at all responsible to share the responsibility of paying some portion of service. Thus service provider is liable to pay 100% tax i.e. 15%. Thanks. - Reply By Ganeshan Kalyani - The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reply = Please read 01.04.2015. (In place of 01.05.2015). - Reply By Pon Ramar - The Reply = Sir so should i pay the service tax or the government? - Reply By KASTURI SETHI - The Reply = Already replied. Why are you not convinced ? If you are not convinced with any reply of the experts, you may engage any advocate or C.A. or some consultant. Law is very much clear. - Reply By Pon Ramar - Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Reply = Sir am a labour contractor. While supplying labours for Government will there be any exceptions regarding Service Tax - Reply By Ganeshan Kalyani - The Reply = You have to pay service tax. There is no exemption. - Reply By KASTURI SETHI - The Reply = Dear Querist,. Without going through terms and conditions of the contract, it is not possible to comment. - Labour Supply - Query S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tarted By: - Pon Ramar Dated:- 29-4-2017 Service Tax - Got 9 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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