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Service tax liability

SANJEEV KUMAR (Finance professional) (227 Points)

09 October 2016

When the aervice provider's turnover is less than 10lakhs and not charging and paying service tax what is the liability of service prpvider.

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6 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 09 October 2016

Do you mean to say what will be the liability of Service Receiver, when service provider is exempted under small service provider?

No liability, unless Reverse Charge Mechanism applicable.

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Mir Irshad Ali (Partner) (192 Points)
Replied 09 October 2016

No Liability of service provider if his turnover is less than 10 lakhs and he is not charging and paying service tax.

Liability of Service Receiver is only in case of reverse charge and that is to be discharged irrespective of the fact as to whether the service provider's turnover is less than 10 lakhs or otherwise.

SANJEEV KUMAR (Finance professional) (227 Points)
Replied 10 October 2016

In this case service provider is providing scavenging service to my office and in this case i think reverse charge mechanism is applicable.Please guide me.

Mir Irshad Ali (Partner) (192 Points)
Replied 10 October 2016

The reverse charge mechanism i.e liability to pay service tax by the service recipient arises only in respect of the services specified under Notfn No. 30/2012-S.T, if the service provider is not a body corporate and the service recipient is a body corporate.

In the query it is not mentioned as to whether the service provider or service recipient are body corporate or otherwise.

SANJEEV KUMAR (Finance professional) (227 Points)
Replied 22 October 2016

In my case service rercipient is a company whereas service provider is a firm. Please give your valuable suggestion .

Mir Irshad Ali (Partner) (192 Points)
Replied 23 October 2016

scavenging service is appropriately classifiable under Business auxilary service. Since "Business Auxiliary Service" is not a specified service under Notfn No. 30/2012-S.T no liability on service receiver under Reverse charge mechanism. Services of Service provider are exempted upto Rs. 10 lakhs if the aggregate turnover for preceeding financial year was less than Rs. 10 Lakhs.