Regarding reverse charges and negative list

Queries 266 views 4 replies

Hi,

My query is,

Whether company needs to pay service tax under reverse charges even if company's services comes under negative list?

Replies (4)

Dear Sir,

Your question is not clear.

However it is informed you that reverse charge is a mechanism which only shifts liability for payment of service tax. But for payment of service tax first and foremost requirement is that the service should be taxable.

So, firstly it should be taxable then only liability of payment.

 

Our services  of online advertisement was convered under negative list so we were not charging service tax to clients, we paid some legal fees to advocates where service tax is to be paid by receipent of service i.e our company.

So my query is whether we need to pay service tax as per reverse charges.

 

Yes

Sir, you have to pay service tax as legal services don’t fall under the Negative List. The liability for payment of service tax on legal services is upon the recipient of service as it comes under reverse charge mechanism.

 

 

 

Thanks you for reply.

One more thing whether service tax under reverse charges is applicable on web services received from amazon from outside india ?

 

 


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