Reverse charge mechanism

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 September 2012 under reverse charge mechanism, service receiver has to discharge his liability irrespective whether provider is registered or not...but what vice versa?....i.e an individual/huf(registered) provides services to corporate without service tax number??

RENGARAJ R.K

RENGARAJ R.K (Expert)

06 September 2012 Yes for the first point. As a company, it has to pay the service tax whether SP is regd or not. For second point, individuals/HUF can provide services upto 10 lacs without registration and to apply RC after reaching 9 lacs.

SANYAM ARORA

SANYAM ARORA (Expert)

06 September 2012 Agreed with the reply

Querist : Anonymous

Querist : Anonymous (Querist)

06 September 2012 my query is if an individual(registered) service provider provides services to a company who is not registered under service tax then how the company i.e. service receiver in this case will discharge its liability under reverse charge..9 lac provision applies to service receiver also?

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