a company providing construction services to rail vikas nigam limited in ap, this service is exempt from service tax because it providing services to railways.
company receiving manpower services and that company charging sevice tax in their invoice ,my query is we are not paying any output service tax so that we do not pay sevice tax on manpower service received
please give the answer for my query
thanking you
Construction Firm Must Pay Service Tax on Manpower Services Despite Output Service Exemption; Reverse Charge Applies. A company providing construction services to a railway entity is exempt from service tax. However, it receives manpower services with service tax charged. The company queries if it should pay service tax on these manpower services since it does not pay output service tax. Experts clarify that exemption of output services does not automatically exempt input services. If manpower services are taxable under the reverse charge mechanism, the company must pay service tax regardless of the exemption on output services. The query was effectively clarified, and the company expressed gratitude for the detailed explanation provided. (AI Summary)
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