Service Tax on reverse charge method - reg.

[vinay wakde]

The service recipient has to pay service tax on reverse charge method w.e.f. 01.07.2012 on various catagory of the services. kindly clarify whether the catagory of the services on which service tax to be paid on reverse charge method is required to be included in existing service tax registration certificate by the assessee before actual payment.

Regards,

VINAY

[Vijay Chitte]

Yes, w.e.f. 01.07.2012 there is only one A/c. head for all taxable services is "Other than in the negative list" and department will issue ST-2 with only one accounting code therefore, ST has to be paid for all category of service in one account head. 

[vinay wakde]

My query is whether all the catagory of services on which we shall be paying service tax on reverse charge method w.e.f. 01.07.2012 is required to be added in existing service tax registration certificate? or otherwise. 

Regards,

VINAY

[Vijay Chitte]

No, you need not to amend ST-2 category wise, even there is no provision to amend ST-2 category wise,  But, you have to amend the ST-2.  When you apply for amendment of ST-2 in ACES, there is only one category will be display in this site that is "Other than in the negative list" , So,  now from 01.07.2012 there is only one A/c. head for all the taxable services, simply you have to select this head and amend the same.

Thanks

Vijay Chitte

(M) 99130 10954

[Debtosh Dey]

I am not clear on "Manpower Supply" service as to whether (1)  tax is payable on wages part also (2) Cenvat can be availed on reverse-charge basis (if provider pays 25% tax and recipient 75%, is Cenvat allowed to recipient on 100% tax ? If not what is the logic ?)

Regards

Debtosh Dey

 

[JAMES PG]

Cenvat credit on manpower supply is eligible on both portions, ie, 25% paid by service provider & 75% paid by service reciever, subject to the eligibility parameters of Cenvat Credit Rules

[rishi mohan]

From 01.07.2012 onwards department has made one accounting head. All taxable services shall be covered in it i.e "Other than in the negative list". Payment of service tax shall be made under one accounting head only. For fresh registration department shall issue ST-2 for the same accounting head mentioning the category of services  "Other than in the negative list"

AI Summary

Reverse charge service tax: single accounting head requires ST-2 amendment selection as 'other than in the negative list'. Recipients must pay service tax under the reverse charge regime consolidated into a single accounting head 'Other than in the negative list'; ST-2 registration need not be amended category-wise and in ACES the registrant must select that single accounting head. Cenvat credit on manpower supply is allowable for both portions of tax (provider and recipient) subject to Cenvat Credit Rules eligibility.