ANALYSIS OF REVERSE CHARGE MECHANISM IN RESPECT OF MANPOWER SUPPLY SERVICES OR SECURITY SERVICES DATED 31.05.2015
Presented By
FCA. Puneet Goyal
(Before proceeding further please read the
disclaimer at the bottom of this write up)
As we all know that after
introduction of negative list approach, in respect of above services, service
tax is payable by both the service provider as well as services receiver.
However it is not applicable in all cases.
Now along with
Finance Act 2015 some changes has been made in respect RCM on manpower supply
services or security services.
In this article
we are trying to show position of service receiver and service provider after
amendment in NN 30/2012 dated 20th June, 2012 by NN 07/2015 dated
01/03/2015 w.e.f. 01/04/2015.
As per sub
clause (v) of clause (I) of NN-30/2012 ST dated 20.06.2012 read with s.no. 8 of
Table of NN-30/2012 ST dated 20.06.2012, we can conclude as under:
Service tax liability of Service Provider and
Service Receiver up to 31/03/2015
TABLE SHOWING EXTENT OF SERVICE TAX PAYABLE BY
SERVICE PROVIDER AND SERVICE RECIVER:
S. NO.
|
SERVICE
PROVIDER
|
SERVIVE
RECEIVER
|
EXTENT OF
SERVICE TAX PAYABLE BY
|
|
SERVICE
PROVIDER
|
SERVICE
RECEIVER
|
|||
1
|
Any individual, HUF or partnership firm or
association of persons
|
DO
|
100%
|
NIL
|
2
|
Any individual, HUF or partnership firm or
association of persons
|
Body Corporate
|
25%
|
75%
|
3
|
Body Corporate
|
Any individual, HUF or partnership firm or
association of persons
|
100%
|
NIL
|
4
|
Body Corporate
|
Body Corporate
|
100%
|
NIL
|
Thus it is clear from above table that only in one case 75% service tax
is payable by service receiver and not in all cases i.e. when service provider
is any individual etc and service receiver is body corporate.
Service tax liability of Service Provider and
Service Receiver WEF 01/04/2015
S. NO.
|
SERVICE
PROVIDER
|
SERVIVE
RECEIVER
|
EXTENT OF
SERVICE TAX PAYABLE BY
|
|
SERVICE
PROVIDER
|
SERVICE
RECEIVER
|
|||
1
|
Any individual, HUF or partnership firm or
association of persons
|
DO
|
100%
|
NIL
|
2
|
Any individual, HUF or partnership firm or
association of persons
|
Body Corporate
|
0%
|
100%
|
3
|
Body Corporate
|
Any individual, HUF or partnership firm or
association of persons
|
100%
|
NIL
|
4
|
Body Corporate
|
Body Corporate
|
100%
|
NIL
|
Thus it is clear from above table that only in one case 100% service tax
is payable by service receiver and not in all cases i.e. when service provider
is any individual etc and service receiver is body corporate.
RELEVANT DEFINITIONS
1.
“supply of manpower” means supply of manpower,
temporarily or otherwise, to another person to work under his superintendence
or control.’
2. "security services"
means services relating to the security of any property, whether movable or
immovable, or of any person, in any manner and includes the services of
investigation, detection or verification, of any fact or activity;"
I
hope above blog is useful for you. Your valuable feedback in respect of same
would be highly appreciated.
(Disclaimer: The above analysis has
been drafted as per various provisions of Finance Act 1994, and notifications
and circulars issued thereunder. The analysis may not be entirely correct for
reader to reader due to different interpretations by different readers. The
readers are advised to take into the consideration the prevailing legal
position before acting on author’s view in caption article. We shall not be responsible for any loss
caused based on this interpretation.)
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