( Expert )
16 July 2012
The Agency auditing party is government or not? If he is government agencies,
From 01.07.2012, all Governmental support services is under reverse charge mechanism. Therefore the Governmental agencies need not collect any service tax, and it is to be borne by the service receiver.
6.In respect of services provided or agreed to be provided by Government or local authority by way of support services excluding,-(1) renting of immovable property, and (2) services specified in sub-clauses (i), (ii) and (iii) of clause (a) of section 66D of the Finance Act,1994
For this the service receiver has to pay service tax on 100% of the value. Please check up whether such fees are under support services.