Reverse charge under supply of manpower

[NANDA H.L.]

We are having 2 firms with different name. Both firms registered under Central Excise. One unit is private limited & other unit is Partership firm. 
My quiery, under Service Tax Reverse Charge in respect of services provided or agreed to be provided by way of supply of manpower for any purpose or security services, 25% of service tax payable by the person providing service & 75% of service tax payable by the person receiving the service. As this applicable to partnership firm?

[YAGAY and SUN]

Yes, it is applicable on Partnership firm if the service provided by LLP, HUF, Partnership firm etc.

[SHIVKUMAR SHARMA]

No, It is not applicable on partnership firm if consttution of service provider is individual,proprietor,HUF or parttnership situated in taxable territory &  if service receiver is also individual,proprietor,HUF or partnership situated in taxable territory.Service provider have to pay 12.36% of ST on the Gross  amount of service charges.(Direct Charges)& service Receiver is to pay  NIL (Under partial reverse Charge)

 

Authority : Under "Direct charges"(Partial Reverse charge ,does not Operate)

 

SHIVKUMAR SHARMA

In case your partnership firm is service provider then:-

a) If it provides services to a body corporate then you have to pay 25% and 75% shall be paid by the body corporate , the receiver of the service.

b) If it oprovides service to an entity other than a body corporate then you have to pay full 12.36% service tax.

On the other side if you are the service receiver, then the entity providing the service shall charge full amount of 12.36% in the bill raised on your partnership firm

Thanks

Shiv Bansal

[RAJAGOPALAN BALACHANDRAN]

Under joint  charge  mechanism ,

When taxable  services in the nature of  supply  of manpower  or  security services  are  provided  for any  purpose  by  an  individual, H.U.F.  or  partnership  firm  whether registered or not located  in a taxable  territory  to  a business  entity registered  as  Body  Corporate  in a taxable  territory the  tax  liability  shall  be  shared   by the service provider  and  service recipient    at  25%  and 75% respectively

This  joint  charge  mechanism  applies    only  when the  service  recipient  is  a  body  corporate. This  does not  apply  when the  service recipient  is  a partnership  firm  

[MANDAVILLI RAMAKRISHNA]

not applicable to partnership firm

AI Summary

Reverse charge for manpower supply: recipient type determines whether tax is shared or provider bears full liability.
Reverse charge for supply of manpower or security services operates as a joint charge only where the recipient is a body corporate; in that case tax is apportioned between provider and body corporate. If the recipient is not a body corporate (for example a partnership firm, individual, proprietor or H.U.F.), the joint-charge partial reverse-charge does not apply and the service provider is liable to discharge the service tax.