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

Reverse charge on service tax: supplier corporate status determines liability-corporate provider charges and pays full service tax.
Liability under the reverse charge depends on supplier status: if the manpower supplier is a body corporate, reverse charge does not apply and the supplier must charge and pay the full service tax. Reverse charge applies only where the supplier is an individual, HUF, partnership firm or association of persons located in the taxable territory and the recipient is a body corporate in the taxable territory.