Reverse charge mechaanism

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 November 2012 we are a company receiving security service from a provider but he is not registered under service tax my doubt is that whether we are liable to pay service tax on 75% as per reverse charge mechanism ,however the the service provider not registered

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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08 November 2012 Yes you are required to pay only your portion of service tax i.e., 75%.

In case the service provider is availing exemption owing to turnover being less than Rs. 10 lacs then he shall not be obliged to pay any tax. However, Service Recipient shall have to pay service tax to the extent of his service tax liability under the partial Reverse Charge Mechanism.

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