Applicability of Service Tax

Dear Sir,

With respect to your quarry please find below answer :

Service Tax shall be applicable to service provider and not to the service recipient except when you are a company and service provider is individual.

Hence in your case consultant will charge the service tax @ 14.5% if it is applicable on them.

In your example you only have to deduct TDS @ 10% on Rs. 1,00,000/- . No Service Tax if it is not a service by advocate. Consultant will add 14.5% after 15.11.2015 on the value of service. ( No abatement applied on the said category)

For further details please free to contact me.

Thanks & Regards

CA Vishrut Shah

(+91-98214798534)

vishrut1303@gmail.com

Dear Sir,

As explained by you, it doesnt appear that your transaction is covered under Reverse Charge Mechanism and hence it is not your responsibility to deduct/ charge Service Tax. Your consultant may charge you Service tax @ 14% plus SBC @ 0.5% in his Bill.

You are required to deduct TDS @ 10% on his Consultancy Bill and pay it to the Government before the 7th of every month.

Regards,

CA Rohit R Sharma

Mumbai.