As per the amendments made in the Union Budget 2015, full Reverse Charge has to be applied for Manpower Supply Service and reduction in abatement for GTA Service from 75% to 70% from 01.04.2015.
In this regard, please arrange to clarify on applicability of amended provisions for the following transactions.
1. Work completed on or before 31.03.2015 -
a. Invoice raised after 01.04.2015 and payment also made after 01.04.2015.
b. Invoice raised before 31.03.2015 but payment made after 01.04.2015.
2.Work completed after 01.04.2015 but invoice was raised and payment was made before 31.03.2015.
Full Reverse Charge on Manpower Supply Service: Tax Liability Shifts to Recipient from April 1, 2015, Per Budget Amendments. The discussion focuses on the applicability of the full reverse charge for Manpower Supply Service following amendments in the Union Budget 2015, effective from April 1, 2015. Queries were raised regarding transactions completed before this date but invoiced or paid afterward. Responses clarified that the full reverse charge would apply from April 1, 2015, shifting the service tax liability entirely to the service recipient. If services were completed and billed before this date, the service provider would be liable for 25% of the tax, with the recipient covering the remainder if payment was made after April 1, 2015. (AI Summary)
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