Service tax

1. Under Reverse Charge mechanism, service receiver is required to pay service tax. This is applicable if services are provided by individual/HUF/firm/AOP to a business entity.
2. In case of security services, service receiver is liable to pay 100% of service tax (if covered under the above provisions).
3. For discharging liability of service tax under reverse charge mechanism, exemption of INR 10 lacs is not applicable and the person liable to pay ST on RCM is required to get registered within 30 days from the date of liability.

Hope this is clear.

Yes, as rightly mentioned by Poornima, the burden of RCM is only applicable on business entiies not on Individuals.

And any individual would be laible to pay Service tax only if he crosses 10lakhs limit, however if the person has mistakenly or knowingly collected the service tax amount in his bill even though he is below 10 Lakhs, he has to pay the same to Government.

Normally service receiver who is business entity shall discharge service tax under reverse charge method. Further Business entity includes those person who ordinally carrying out any activity relating to industry, commerce or any other business or profession. so if LLP is doing business then he is also liable to pay service tax under reverse charge method.

Normally service receiver who is business entity shall discharge service tax under reverse charge method. Further Business entity includes those person who ordinally carrying out any activity relating to industry, commerce or any other business or profession. so if LLP is doing business then he is also liable to pay service tax under reverse charge method.