Manpower supply ser tax registration -reg

[venkat eswaran]

Dear All,

We are service receiver for Manpower supply thro 1 contractor. This contractor was not registered in ser tax and NO ser. tax number so far Since we are paying 100 % ser tax under reversal mechanism. Now the transaction amount crossed 10 lakhs in current year 2016-17.

Whether we can allow him further without registering in Ser Tax dept?

So far we have not insisted Ser Tax No. since we are paying ser tax 100% .

Whether we face any problem from central excise since we are taking this ser tax credit every month

Kindly clarify and give your views

Thanks in advance

Venkat

AI Summary

Contractor's Lack of Service Tax Registration Not an Issue; Company Liable for Tax Under Reverse Charge Mechanism. A company receiving manpower supply services from a contractor is concerned about the contractor's lack of service tax registration, as the transaction amount exceeded 10 lakhs in the current year. The company has been paying 100% of the service tax under the reverse charge mechanism. Two responses clarify that if the contractor is an individual, HUF, or partnership firm, and the company is a corporate body, the responsibility to pay the service tax lies with the company. Therefore, the contractor's lack of registration does not pose a problem, and the company can continue claiming service tax credit.