TaxTMI 
TaxTMI 
TaxTMI 
We have been provided services by Manpower Recruitment Agency during August,12.
Kindly let us know whether we (Service recipient) have to pay Service Tax (50%) under Reverse charge mechanism.
Regards,
VINAY
Service Tax on reverse charge method - reg.
vinay wakde
Service Recipient Liable for 75% of Service Tax Under Reverse Charge for Manpower Services in August 2012. A discussion on a forum addressed whether a service recipient must pay service tax under the reverse charge mechanism for services provided by a manpower recruitment agency in August 2012. Initially, it was suggested that if the service provider is a private or limited company, they would charge 100% service tax; otherwise, both parties share 50% liability. However, it was later clarified and agreed that the service recipient is responsible for paying 75% of the service tax under the reverse charge mechanism. (AI Summary)