TaxTMI 
TaxTMI 
Dear Experts,
I wish to know in reverse charge mechanisam, what is the %age of service tax payment to be done by SP & SR if SP & SR both are Pvt. Ltd organisations.
Reverse charge mechanism
29 Aug 2012 
4 Replies 
1521 Views Asked by
Reverse charge mechanism requires recipient to pay tax where provider is individual or firm, not when provider is private company.
Reverse charge arises for supply of manpower, security services and renting/hiring of vehicles only when the provider is an individual, HUF or partnership firm and the recipient is a company; the provider will charge and collect the full service tax and deposit it, whereas if the provider is a private limited company the recipient has no reverse charge liability. (AI Summary)
Reverse charge arises for supply of manpower, security services and renting/hiring of vehicles only when the provider is an individual, HUF or partnership firm and the recipient is a company; the provider will charge and collect the full service tax and deposit it, whereas if the provider is a private limited company the recipient has no reverse charge liability. (AI Summary)