full reverse charge mechanism

[Guest]

Sir,

I need a clarification regarding Reverse Charge Mechanism, if I m a service receiver what's the procedure to be follow?

shall I provide full amount of ST 12.36% to the registered service provider in case of man power supply?

reply me

[YAGAY andSUN]

You have to pay the service tax in cash through GAR-7 Challan on Manpower Supply and recruitment services from your own pocket and avail the CENVAT credit of it.

[Vivek anandhan]

Sir

Effective date for Full reverse charge Mechanism for Man power. Whether it will apply any other service

[Guest]

Thanks for ur reply Mr.YAGAY AND SUN,

But my Question, For eg: If A is registered party providing man power supply to me and he claimed 25% ST with his bill i.e., 3.09% ST paid by him and balance 75% ST paid in cash through GAR-7 Challan by us. In this regarding from April 2015 is there any changes in the above said example?

[YAGAY andSUN]

Dear Felix,

You have to pay service tax on 100% value under Full reverse charge mechanism from 01-04-2015, through cash/GAR-7 Challan.

Regards,

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

[DR.MARIAPPAN GOVINDARAJAN]

The opinion rendered by Yagay and sun is correct. The service provider cannot claim any service tax. The service recipient is liable to pay 100% service tax on reverse charge mechanism basis.

[NANDA H.L.]

Hello

If service recipient is a Partnership firm or proprietor, is liable to pay 100% service tax on reverse charge mechanism basis w.e.f 1^st Apr’15??

[Vandana Singh]

Sir

Is this full reversal is applicable If Man power supply services is provided by a company to another company?

Please clarify

[Mahir S]

Mr. Nanda,

For manpower supply, if the service recipient is a partnership or proprietary concern then they are not liable for payment of service tax.

Total 100% service tax to be paid by service provider, as existed earlier. No change herein.

[Mahir S]

V. Singh,

Only Manpower supply and security services when provided by an individual, HUF, or partnership firm to a body corporate are now being brought to full reverse charge. Previously, these were taxed under partial reverse charge mechanism.

Hence, there is no change under reverse charge mechanism for manpower supply except that wherein service tax which were previously paid under partial reverse charge mechanism is now to be paid under full revere charge mechanism.

AI Summary

Reverse Charge Mechanism Update: Service Recipient Now Pays 100% Tax for Manpower Supply Services Effective April 2015. A discussion forum addresses the reverse charge mechanism under service tax for manpower supply services. Initially, a service recipient had to pay 75% of the service tax, while the provider paid 25%. From April 1, 2015, the full reverse charge mechanism requires the service recipient to pay 100% of the service tax. This applies to services provided by individuals, HUFs, or partnership firms to corporate bodies. The service provider cannot claim any service tax, and the recipient must pay the full amount through a GAR-7 Challan. There is no change for partnerships or proprietary concerns.