What is Reverse Charge Mechanism?
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Reverse charge
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Dear Devika,
The mechanism of shifting the service tax liability from service provider to the service recipient is known as service tax reverse charge mechanism.
All the best!
Regards,
QLI Success Oriented Coaching for CA and CS
www.qli.co.in
9029083303
Refer notification no 30/2012
As per Section 68(1) of finance act, every person who is providing service is liable for payment of service tax. But in some cases, i.e. under section 68(2), service receiver is liable to pay service tax and not service provider. This situation is called as REVERSE CHARGE MECHANISM.
Regards,
Siddharth Bumb
www.facebook.com/DTandIDT
www.siddharthbumb.blogspot.com
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