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Reverse tax on management consultancy services?

Sebastian PV (nil) (28 Points)

12 August 2016

Does the Management Consultancy Services falls under Reverse tax mechanism? Is it the liablity of service receiver to collect the service tax on the service received?

Thanks in advance.

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3 Replies

Mir Irshad Ali (Partner) (192 Points)
Replied 12 August 2016

The taxable services on which service tax is payable by the service recipient as per Section 68(2) of the Finance Act, 1994 are specified under Notfn. No. 30/2012-S.T.

Management Consultancy Services are not specified under Notfn. No. 30/2012-S.T, hence the same are not covered for RCM.

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Sebastian PV (nil) (28 Points)
Replied 12 August 2016

Thanks for the reply. I raised my doubt because as per Notfn. No. 30/2012-S.T Reverse Tax is applicable ''in respect of services provided or agreed to be provided by individual advocate or a firm of advocates by way of legal services''

The defenition of the term legal is as follows :

“Legal service” means any service provided in relation to advice, consultancy or assistance in any branch of law, in any manner and includes representational services before any court, tribunal or authority”

So my question is, does that bring management consultancy services under legal services?