Reverse charge mechanism

This query is : Resolved

Gaurish Puranik (Querist)
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13 May 2013 Under Reverse Charge Mechanism Service Receiver (SR) has to pay certain % of S.Tax on his own.
But if S.Tax is not charged in the bill whether SR has to pay S.Tax on reverse charge basis ?

How should SR would know that Service Provider was liable to pay S.Tax or not ?

Is liability to pay S.Tax by SP is mandatory irrespective of S.Tax charged or not in the bill ???

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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13 May 2013 When Service Tax is not charged by SP, SR has to pay his share of service tax on partial reverse charge basis. Like 40% on rent a Cab and 75% on Manpower supply by SR.

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