Reverse charge under service tax

Others 1615 views 5 replies

 

S.N.

SERVICES

% OF SERVICE TAX BY SERVICE PROVIDER

% OF SERVICE TAX BY SERVICE RECEIVER

1

Insurance business

Nil

100

2

GTA

Nil

100

3

Sponsorship

Nil

100

4

Arbitral tribunal

Nil

100

5

Individual Advocate

Nil

100

6

Support Service by govt. or local authority

Nil

100

7

i] Renting of motor vehicle for passenger on abated value

ii] on non abated value

Nil

 

60

100

 

40

8

Supply of manpower or Security Services

25

75

9

Work contract

50

50

10

Non taxable territory to taxable territory

Nil

100

 

11

Service provided or agreed to be provided by director of company to the said company

Nil

100

 

The scheme of partial reverse charge has been introduced for three services where the service provider is either an individual or HUF or partnership Firm or LLP or association of person and a recipient is corporate.[ Point No. 7,8,9 of the Table]

Replies (5)

This Case may Arise:-

If Service Provider is Corporate,

and Service Receiver is Individual/Firm.

& Say, On That Service, Reverse Charge is Applicable,

Then Also Individual/Firm Need to Pay service Tax By Getting registered Under service Tax Act , Provided Individual/Firm Turnover Sales Exceed 10 lacs.

Otherwise Corporate Need to Pay Service Tax.

For which service this is applicable?

Originally posted by : CA Manish Malu

For which service this is applicable?

 

Security Service comes under supply of manpower service and for this reverse charge is applicable if

 

provider is

i)       any individual

ii)      HUF

iii)   Proprietary firm

iv)  partnership firm

v)    Association of Persons 

located in the taxable territory

 

and receiver is

i) Any company registered under the Companies Act 

ii) business entity registered as body corporate

 located in the taxable territory.

 

Therfore is a Company is provider it wont come under reverse charge so provider has to pay 100%.

 

 

 

 

Originally posted by : CA Manish Malu

Security Service comes under supply of manpower service and for this reverse charge is applicable if

 

provider is

i)       any individual

ii)      HUF

iii)   Proprietary firm

iv)  partnership firm

v)    Association of Persons 

located in the taxable territory

 

and receiver is

i) Any company registered under the Companies Act 

ii) business entity registered as body corporate

 located in the taxable territory.

 

Therfore if a Company is provider it wont come under reverse charge so provider has to pay 100%.

 

 

 

 


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