Service charges reverse mechanism

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This query is : Resolved

Vipin Kumar Sharma (Querist)

11 September 2012 Dear Sir
What is service charges reverse mechanism, we are pvt ltd co. is it applicable on us, we are already registerd with service tax for paying GTA, is their required for new registration with service tax.
Thanks In advance

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)

11 September 2012 1. Reverse charge means the service recipient is liable to pay service tax instead of the service provider.

2. The service recipient has to get himself registered, pay the service tax and also file the return.

3. Some of the services on which reverse charge is applicable are as under:

GTA, car hire charges, manpower supply services, security services, service provided by directors, service provided by advocates, works contract, etc.

There are a number of articles on reverse charge in the articles section.

Go through the same.

RENGARAJ R.K

RENGARAJ R.K (Expert)

11 September 2012 Agreed with the expert. Like GTA services, there are 10 more new services added for the purpose of REverse charge mechanism. As a private limited company, if you are service receiver, all such services are applicable to you and you have to pay either partial or full portion and take cenvat input claim. Go thro the notn 15/2012.

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