service tax reverse charge
This query is : Resolved
13 June 2016
If the service receiver is a society (Indian) & service provider is foreign company.
Does the service receiver I.e society need to pay service tax on reverse charge??
14 June 2016
yes, its applicable on all the assesee when you recd. services from out side india.
14 June 2016
is there any special provisions if the service receiver is society??
25 July 2025
Great question! Here’s how it works:
When an Indian **society** (registered under the Societies Registration Act or similar) receives services from a **foreign service provider**, the **reverse charge mechanism (RCM)** under service tax rules applies **just like any other service recipient in India**.
### Key points:
* The society, as a service receiver, **is liable to pay service tax under reverse charge** on the value of the services received from the foreign provider.
* There is **no special exemption or different treatment** specifically for societies in this case.
* The society must **register for service tax** (if turnover crosses threshold limits or liable under RCM) and file returns accordingly.
* The service tax rate applicable is the standard rate (now GST replaced service tax, but for historical service tax context it was 15% including cesses).
### Summary:
**No special provisions** exempting societies from reverse charge when receiving foreign services. The society has the same obligations as any other service receiver under RCM.
---
If you want, I can also guide you on how the society should register or file returns under RCM for such foreign services!
When an Indian **society** (registered under the Societies Registration Act or similar) receives services from a **foreign service provider**, the **reverse charge mechanism (RCM)** under service tax rules applies **just like any other service recipient in India**.
### Key points:
* The society, as a service receiver, **is liable to pay service tax under reverse charge** on the value of the services received from the foreign provider.
* There is **no special exemption or different treatment** specifically for societies in this case.
* The society must **register for service tax** (if turnover crosses threshold limits or liable under RCM) and file returns accordingly.
* The service tax rate applicable is the standard rate (now GST replaced service tax, but for historical service tax context it was 15% including cesses).
### Summary:
**No special provisions** exempting societies from reverse charge when receiving foreign services. The society has the same obligations as any other service receiver under RCM.
---
If you want, I can also guide you on how the society should register or file returns under RCM for such foreign services!
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