Partial reverse charge

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Aditya Shukla (Querist)
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26 June 2013 under partial reverse charge mechanism, if service provider is not registered then is service receiver liable to pay his share of service tax?

Ganeshbabu K

Ganeshbabu K (Expert)
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26 June 2013 No you need to discharge your part of liability only..

1)In case the service provider is availing exemption owing to turnover b eing less than Rs. 10 lakhs then he shall not be obliged to pay any tax.

2)However, Service Recipient shall have to pay service tax to the extent of his service tax liability under the partial Reverse Charge Mechanism.

3)the service recipient cannot avail SSI exemption while discharging service tax liability under reverse charge.

4)Service tax liability of the Service Provider and Service Recipient are different and independent of each other. The Service Recipient can independently choose a valuation option, which is independent of Service Provider.

Thanks & regards
Ganesh babu k

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