service tax liability under rcm scheme

[VISHNU PRAKASH SAINI]

1. Can a company avail the benefit of ssi exemption if the co. provide the man power supply services under the RCM SCHEME?
2. A company has been registered under service tax and company has not charged service tax in invoice. now the turnover exceeds the ssi exemption limit (Ten lakh) so now in this case company would be liable to pay service tax on whole value of turnover or after 10 lakh?

[Ganeshan Kalyani]

Vishnu,

The provider of service can avail exemption of SSI if T/O is below ten lakhs.

Service is exempted if T/O is below 10lakhs. If T/O exceeds the limit then service tax is applicable of above 10lakh turnover.

regards,

ganeshan

[Rajagopalan Ranganathan]

If you are a provider of manpower supply service, then you can avail the SSI exemption. SSI exemption is available if your turnover during previous financial year is below 10 lakhs or is not likely to exceed the limit of ₹ 10 lakhs during current financial year. You shall take registration under Finnance Act, 1994 when you turn over exceeds 90% of the limit.

AI Summary

SSI exemption for manpower supply services under RCM applies if turnover is below threshold; tax applies on excess. Eligibility for the SSI exemption for manpower supply services under the reverse charge mechanism depends on aggregate turnover remaining below the prescribed threshold; if turnover exceeds that threshold the exemption does not apply and service tax is payable on the turnover in excess. Registration must be obtained once turnover approaches the threshold, and taxation under the Act applies to the excess turnover after the threshold is crossed.