Service tax on reverse charges

541 views

Save Share

Join Us Follow Us Add as Source

prosanta bordoloi

AAO

40 Points Posted on 07 November 2013

We are a Public Sector Utility , we are paying service tax as reverse Charge on the following services

(a) Rent-a Cab Services

(b) Manpower Supply

But the reverse charge is paid if the services is received from (a) individual , HUF , or partnership firm or AOP . The service tax auditors are commenting that the reverse charge is also applicable if the services are received from Company or PSU also , Kindly clarify

Replies (2)

Shivani Mittal

Practice

323 Points Posted on 07 November 2013

Dear Prosanta,

The following is the link for Notification No. 30/2012 dated 20.06.2012 :

https://www.servicetax.gov.in/st-notfns-home.htm

Navigation :- Year 2012; : - 30/2012-ST dt. 20-06-2012 [Eng]

Following is the link for its interpretation :

/articles/understanding-reverse-charge-mechanism-in-service-tax-17538.asp#.UnthTnC7GI8

Kindly refer the above links, hope it is useful.

CA. Narottam Kumar Rawat

Indirect Tax Consultant

333 Points Posted on 08 November 2013

Dear Prosanta,

In above three case reverse charge is applicable only in case

Service Provider is : Individual, Proprietor, Partnership Firm, LLP, AOP

and

Service Recipient is a Company or Body Corporate.

Therefore, claim of Service Tax Auditor that in these cases reverse charge is applicable where provider is corporate.

However, in case service provider is outside India, then all the cases recipient is liable to pay services tax under reverse charge (Import of Services)