Liability to deposit Service Tax for reverse charge

[Ashok Chopra]

Respected Forum,

 

Service provider  X Company and supplying man power to Y  Company. X company will charge how much service tax, whether 25% or 100%.  Is in this case liability of 75% service tax under  reverse charge will not be on receipant and 100% service tax will be paid by Service Provider.  also let me know the notification number.

regards  

AI Summary

Service Provider X Must Charge 100% Service Tax; Reverse Charge Not Applicable Under Notification No. 30/2012 A service provider, X Company, supplies manpower to Y Company. The query concerns whether X should charge 25% or 100% service tax and if Y is liable for 75% under reverse charge. Responses clarify that if the service provider is a body corporate, reverse charge does not apply, and X should charge 100% service tax. Reference is made to Notification No. 30/2012-Service Tax, indicating that reverse charge applies only if the provider is an individual, HUF, or partnership, and the recipient is a corporate body. In this case, X charges 100% service tax, and the liability rests with it.