02 August 2013
As Per Notification of Service tax :- In the following cases the reverse charge mechanism is applicable only if the service recipient is a company (Pvt ltd/ltd) and the service provider is a non-body corporate (eg individual/firm/LLP).
† Works Contract services
† Renting or hiring of motor vehicle to carry passenger
† Supply of manpower services
In the above cases the service liability will have to be shared both by service provider and service recipient in specified shares eg. on work contracts, 50% will have to borne by service recipient and 50% by service provider .
My Query :- We are in a Running Project for a Hospital , and done many works by contractors , I would like to know that Should We register in Service Tax ? because of we will provide Hospital Services & Hospitals are not liable to Pay Service tax. Is Reverse Charge Mechanism Applicable on us ?
02 August 2013
Reverse charge will be defientely applicable to you if you are business entity registered as body corporate..no special exemption has been provided to hospitals
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