Is RBI is liable for payment of service tax under Reverse charge mechanism .if yes then will you please give some notification or justification for the same. Guide me as soon as possible.
20 March 2014
As per clause (b) of section 66D, the services provided by RBI are specified as nontaxable services.
The services provided to RBI are not specified in negative list. Therefore, service provided to RBI will be taxable service. As per notification no. 30/2012 ST,dated 20/june/2012 service recipient is also liable to payment of service tax for the services specified therein. RBI receiving specified services will be liable to pay service tax. . . Note that RBI is not Business entity registered as body corporate,, it is a statutory body set up by special act.. . . in this case under what category you will impose service tax on rbi under reversecharge . . probably there is no serve which comes taxable in hands of rbi as serice receiver . . Lets see others view here
21 March 2014
Hello, Thank you sir for your reply. But sir RBI has taken registration for service tax under "Others" category then what will the consequence for tax payment.
CAclubindia
