Reverse charge
This query is : Resolved
22 December 2013
Hello sir.. Good evening
sir i want to know
why govt. introduce the concept of revrse charge, how can minimize tax evasion by this.
if there is any reason plz tell me i am waiting for ur valuable reply.
Thanks...
Nikhil Kaushik
(Expert)
22 December 2013
well if you see, most of the services covered under reverse charge mechanism are provided by individuals or small service providers spread over a large geography. By taking away service tax compliance from their hands and making liable entities which are often in organized form, govt ensures that compliance is better. Thats help in reduction in evasion.
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