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.
05 Sep 2012 
3 Replies 
1001 Views Asked by
Reverse charge liability: conflicting advisory views on allocation of service tax burden between recipient and manpower agency.
The query asks whether the service recipient must pay a portion of service tax under the Reverse Charge Mechanism for manpower recruitment services. One advisory view says if the provider is a private limited or limited company the provider will charge full service tax to the recipient; otherwise liability is split 50% each. An alternative advisory view contends the recipient must pay 75% under reverse charge, and a participant agreed with that position. (AI Summary)
The query asks whether the service recipient must pay a portion of service tax under the Reverse Charge Mechanism for manpower recruitment services. One advisory view says if the provider is a private limited or limited company the provider will charge full service tax to the recipient; otherwise liability is split 50% each. An alternative advisory view contends the recipient must pay 75% under reverse charge, and a participant agreed with that position. (AI Summary)