Service tax on partial reverse charge

Yes, Definately Its Available.

it is available to the provider but no such exemtion is avialble to the recepient

By which rule it is governed ?

The Notification which provides for exemption upto 10 lacs states that the benefit would be available to Service Provider. In view of this, the benefit would be available only to Service Providers.

Under Partial Reverse Charge, For Eg;

Service provider :- Individual

Service receiver: Corporate But Turnover Doesnt Exceed 10 Lacs, Then Not Liable to Service Tax.

so in This Case, Service receiver Enjoy Benefit of SSI.

Originally posted by : CA AYUSH AGRAWAL
	Under Partial Reverse Charge, For Eg; Service provider :- Individual Service receiver: Corporate But Turnover Doesnt Exceed 10 Lacs, Then Not Liable to Service Tax. so in This Case, Service receiver Enjoy Benefit of SSI.

Proviso to the First para of Notification No. 33 relating to basic exemption limit of Rs. 10 lacs for SSP issued provides as follow:

“Provided nothing contained in this notification shall apply to

a.       Such value of taxable services in respect of which service tax shall be paid by such person and in such manner as specified under sub-section (2) of section 68 of the said Finance Act read with Service Tax Rules, 1994”

     As can be seen, the SR is not permitted to avail basic exemption limit of Rs. 10 lacs.

Explanation by CBEC.

“The liability of the service provider and service recipient are different and independent of each other. Thus, in case the service provider is availing exemption owing to turnover being less than Rs 10 lakhs, he shall not be obliged to pay any tax. However, the service recipient shall have to pay service tax which he is required to pay under the partial reverse charge mechanism.”

Hi Ayush..

The exemption provided in notification no.33/2012-ST dated 20-6-2012 is for the Service Provider. Can you  please explain with reference to the provision/notification?

In case of legal services, liability would arise on the recipient only if is a business entity having turnover below 10 lacs in the preceding year (Entry No.6 of Notification No.25/2012 dated 20-6-2012). So in case of other services, the recipient would be liable irrespective of his turnover.

Originally posted by : CA Manish Malu
	Explanation by CBEC. “The liability of the service provider and service recipient are different and independent of each other. Thus, in case the service provider is availing exemption owing to turnover being less than Rs 10 lakhs, he shall not be obliged to pay any tax. However, the service recipient shall have to pay service tax which he is required to pay under the partial reverse charge mechanism.”

Yes, Its True That No Exemption to Service Receiver, of SSP.

But in Case of SSI,

SSI Provision dealt under Central Excise, but under Service Tax, it is Small Service Provider.