Reverse charge

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Querist : Anonymous

Querist : Anonymous (Querist)

02 January 2014 if any service provider is not registered under service tax act then wether the liability of service tax will be held on service receiver under reverse charge

please answer soon its urgent

Annu Agarwal

Annu Agarwal (Expert)

02 January 2014 You mean that the Service provider is a Small Service Provider enjoying SSI exemption.
Then the answer is yes,even in that case the service receiver shall pay service tax provided he is receiving any of the services specified in Reverse charge Mechanism.Services on which reverse charge mechanism applies are specified in Notification 30/2012 dated 20/06/2012

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Querist : Anonymous

Querist : Anonymous (Querist)

03 January 2014 but why,there is no service tax liablity on the provider due to non registration so why should receiver will be liable to pay.what is the logic?

Annu Agarwal

Annu Agarwal (Expert)

03 January 2014 Sir as per service tax rules liability of service receiver under reverse charge is independent from that of service provider.
The main logic of the Government behind the same is to cover even the unorganised service providers under the service tax ambit.

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