Input Service credit - Reg

[vinay wakde]

We are receiving input service namely “Manpower supply service” in the plant to carryout various work such as housekeeping, cleaning, loading/unloading, shifting, gardening etc. Some of our contractors were registered under service category “Manpower supply service” however; some of the contractors have taken service Tax Registration under service tax category “Repair & Maintenance service”.  After enactment of finance Bill, the person who is receiving Manpower service is liable to pay service tax (75%) under reverse charge mechanism.  Kindly guide us whether we have to insist the remaining service providers to get them registered under service category  “Manpower supply Service” as per the nature of service provided to the our company.

Regards,

VINAY

 

[Raginee Goyal]

Inclusion of additional categories of services provided by the Service provider is required under Rules. Should be done.

[YAGAY and SUN]

Yes, you must ask them to get themselves registered and under appropriate tax category for the purpose of right classification.

[vinay wakde]

In case the service providers are not added the service catagory namely "Manpower Supply Service"  in their Service Tax Registration Certificate on or before enactment of finance bill, still we are liable to pay service Tax on reverse charged method immediately after enactment of finance bill, considering the nature of service received by us  or we are lible to pay service Tax only after addition of said catagory of service by respective  service providers in their Service Tax registration.    

Regards,

VINAY

 

AI Summary

Reverse charge liability for manpower supply requires recipients to pay service tax upon enactment and verify supplier registration.
Reverse charge liability applies to receipt of manpower supply services: upon enactment the recipient is required to pay service tax under the reverse charge mechanism based on the nature of services received. Service providers should add the "Manpower Supply Service" category to their service tax registration and be registered under the appropriate service classification to ensure correct compliance and allocation of obligations.