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

 

AI Summary

Company Must Ensure Contractors Register Correctly for Service Tax Compliance Under Reverse Charge Mechanism, Despite Finance Bill Changes. A company receives 'Manpower supply service' for tasks like housekeeping and gardening. Some contractors are registered under 'Manpower supply service,' while others are under 'Repair & Maintenance service.' With the finance bill's enactment, the company must pay 75% of the service tax under the reverse charge mechanism. The company seeks guidance on whether to insist that all service providers register under the 'Manpower supply service' category. Responses suggest ensuring service providers are registered under the correct tax category for proper classification, regardless of the finance bill's enactment.