Service tax - is rcm applicable in co -operative bank ?

Yes,Bank is liable to pay Service tax @ 12.36% under Reverse charge mechansim as service receiver is a business entity and located in the taxable territory.

Refer RCM notiifcation 30/2012 dated June 20,2012

But co-operative bank is after all a Bank company and subject to RBI and Banking Regullation Act...therefore liable to RCM for the said services like any other company.

Please note that the notification no. 30/2012 states that the legal services provided by an advocate or firm of advocates to a "Business entity" are liable for reverse charge.

As per Sec. 65B(17), the definition of the business entity is "any person ordinarily carrying out any activity relating to industry, commerce or any other business or profession".

As per Sec. 65B(37), a person includes, among others, an association of persons

Hence, as the co-operative bank carries on banking business, the reverse charge applies to it also.

Yes bank is liable to pay service tax on reverse charge basis @ 100% i.e 12.36 %

Yes,  for lawyer fee and goods transport co-op bank is liable under reverse charge . Though co op. Bank is NOT liable under reverse charge for payment to works contractor etc as co op bank is not a "Body Corporate " as defined in service tax rules. And as per relevant notification for RCM, service user has to be "Body Corporate" for levy of service tax on RCM basis for works contract payment etc. This definition of "body corporate " in service tax rules comes from sec 2 of Companies Act which excludes co operative society from its ambit . Further, every co operative bank is inherently a co operative society registered under state co operative societies act ( or a multi state co op society under central act for co operatives).

Thanks Anand sir, Mohan sir, Aditya Sir, and  Saurabh Sir for your valulable advice...

You are Welcome Sumit..