The reverse charge in case of service tax on Manpower Supply and Security services is amended wef April 1, 2015. The provisions of reverse charge in case of service tax on Manpower Supply and Security Services u/s.68(2) of the Finance Act, 1994 is amended by Notification No.7/2015-Service Tax dated March 1, 2015 to be effective from April 1, 2015 to give effect of the Budget, 2015 proposal of the Hon’ble Finance Minister.
The notification seeks to amend the erstwhile notification No. 30/2012-Service Tax, dated the 20th June, 2012 read with section 68(2) of the Act. The relevant text of the notification is reproduced herein under;
(iii) againstSl. No. 8, in column (3) and column (4), for the existing entries, the entries“Nil” and “100%” shall respectively be substituted;”
Consequent to the aforesaid amendment, the Manpower supply and security services when provided by individual, HUF, partnership firm to a body corporate are being brought to full reverse charge as a simplification measure. Presently, these are taxed under partial reverse charge mechanism.