service tax reverse charge

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sukesh (Querist)
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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??

Rupesh Jain

Rupesh Jain (Expert)
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14 June 2016 yes, its applicable on all the assesee when you recd. services from out side india.

sukesh

sukesh (Querist)
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14 June 2016 is there any special provisions if the service receiver is society??

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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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.

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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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