TaxTMI 
TaxTMI 
Sir,
Am a Man Power Supplier for Tamilnadu Government departments. I have Annual Turnover of around ₹ 10,00,000 PA. Who will pay the Service Tax? Me(SP) or Tamilnadu Government(SR)?
Service Tax for Man Power Supply
25 Apr 2017 
16 Replies 
4835 Views Asked by
Service Tax liability on manpower supply: providers must pay when receivers are not body corporates, not under reverse charge.
Supply of manpower to non body corporate government departments and cooperative societies places Service Tax liability on the service provider; the Reverse Charge Mechanism applies only when the receiver is a body corporate. Small scale exemption should be considered, but limited wages paid by the government do not alter tax incidence. Practically, suppliers may treat gross receipts as cum tax under Section 67(2); receivers are not obliged to reimburse the supplier for service tax paid. (AI Summary)
Supply of manpower to non body corporate government departments and cooperative societies places Service Tax liability on the service provider; the Reverse Charge Mechanism applies only when the receiver is a body corporate. Small scale exemption should be considered, but limited wages paid by the government do not alter tax incidence. Practically, suppliers may treat gross receipts as cum tax under Section 67(2); receivers are not obliged to reimburse the supplier for service tax paid. (AI Summary)