Dear Sir,
our vendor turnover not exceed limit of service tax area but as per circular we will full-fill our liability at the rate of 75 percent under Manpower Service who is not company under company Act 1956.
Pl. advice to us service provider means vendor not covered under service tax area ceiling limit so in such case we will full fill our liability part 75 percent of gross amount under Manpower service
pl. provide your good advice.
Thanks & Regards
Arjun Sachdeva
Mitsui Prime Advanced ,
Neemrana
Company Must Pay 75% Service Tax Under RCM Despite Vendor's Turnover Being Below Threshold for Manpower Services A company inquired about their service tax liability under the Reverse Charge Mechanism (RCM) as their vendor's turnover does not exceed the service tax threshold. Three respondents clarified that despite the vendor being below the threshold, the company must fulfill its tax liability under RCM at 75% of the gross amount for manpower services. The threshold limit does not apply to the service recipient, only the provider. Additionally, if the company is paying total wages to the vendor, they must bear the service tax after deducting reimbursable expenses like food and uniforms. (AI Summary)
TaxTMI 
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