ST Category

[Asked by Guest]

which category applicable for deployment of driver

[PAWAN KUMAR]

Dear Sir,

Deputing an driver or providing an driver can be covered under the category of manpower recruitment or supply agency service.

[Mahir S]

If provided by any agency then it shall fall under manpower supply service, as explained above.

[YAGAY and SUN]

Dear Mangesh,

Such activities would fall under Manpower Supply category, which is taxable category and if you do not fall under the PVT. Ltd or Limited company then, you would have to charge the service tax while raising bills within 30 days from the providing of taxable service on the 25% of the value of such bill. The service recipient would have to pay the service tax on the 75% of the value of such bill under Partial Reverse Charge Mechanism vide Notification No. 30/2012-ST.

Regards,

Sameer Malhotra- Consultant

YAGAY and SUN

Management, Business and Indirect Tax Consultants

AI Summary

Manpower supply service: supplier accounts for part of service tax while recipient bears remaining liability under partial reverse charge.
Deployment or provision of a driver is classed as manpower supply service and is taxable. If the supplier is not a private limited or limited company, the supplier must account for service tax on a portion of the bill and bill within the prescribed timeline, while the service recipient is liable to pay the remaining service tax under the partial reverse charge mechanism per Notification No. 30/2012 ST.