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roshan tewari (Querist)
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09 September 2013 please suggest if service provider is availing abatement then, provider can also avail reverse charge mechanism... ???

CA Vikas Acharya

CA Vikas Acharya (Expert)
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09 September 2013 THERE IS NO QUESTION TO AVAIL REVERSE CHARGE..
WHEREVER REVERSE CHARGE APPLICABLE SERVICE PROVIDER AND SERVICE RECEIVER BOTH NEED TO PAY SERVICE TAX OF THEIR PART WHETHER ABATEMENT TAKEN OR NOT.

HENCE ANS FOR YOUR QUERY IS YES.

Gopalkrishna Hegde ,CA,DISA

Gopalkrishna Hegde ,CA,DISA (Expert)
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10 September 2013 Dear Roshan

The abatement and reverse charge mechanism are two different concept

Normally the concept of abatement prevails where there are chances of dual taxation. So the abatement provides relief to the assessee. It happens where the price includes value of material and service provided.

However the reverse charge mechanism is different from abatement ,where the total liability of service tax is collected from the service provider as well as receiver.and it is not an abatement.

certain portion of burden of liability to pay service tax gets shifted to service receiver as well.

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