Reverse charge of service tax

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Rushikesh Kuncolienkar (Querist)
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11 October 2012 If a service recepient is partnership, then what is the liability of reverse charge of service tax? whether partnership firm has to register under reverse charge of service tax ?

Rushikesh Kuncolienkar

CA Navin Jain

CA Navin Jain (Expert)
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11 October 2012 Notification no. 15/2012-ST dated 17.3.2012 has been issued wherein the taxable services/ cases are prescribed on which reverse charge method will be applicable. The following services are prescribed in respect of which the recipient will be liable to pay the service tax –

● services provided by an insurance agent to any person carrying on insurance business
● services provided by a goods transport agency in respect of transportation of goods by road
● services provided by way of sponsorship
● services provided or by an arbitral tribunal
● services provided by individual advocate
● services provided by way of support service by Government or local authority
● taxable services provided by any person located in a non-taxable territory and received by any person located in the taxable territory

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CA Navin Jain

CA Navin Jain (Expert)
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11 October 2012 Three services are being prescribed under notification no. 15/2012-ST in respect of which both service provider and service recipient will be considered as person liable to pay the service tax on the basis of a fixed percentage. This amendment will be applicable only where the service provider is an individual/firm/LLP and the recipient is the body corporate. The services and portion of service tax payable by provider and recipient of services are as follows:-

S. no. Description of Service Service Recipient Service Provider
1 Hiring of motor vehicle for passengers –
● with abatement
● without abatement

100%
40%

NIL
60%
2 Supply of man power 75% 25%
3 Works contract 50% 50%

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