ICICI

Service tax on reverse charges


prosanta bordoloi (AAO)     07 November 2013

prosanta bordoloi
AAO 
 83 points

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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 

(c) Works Contract 

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 

avater

Shivani Mittal (Practice)     07 November 2013

Shivani Mittal
Practice 
 47 likes  425 points

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Dear Prosanta,

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

http://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.

avater

CA. Narottam Kumar Rawat (Indirect Tax Consultant)     08 November 2013

CA. Narottam Kumar Rawat
Indirect Tax Consultant 
 31 likes  387 points

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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) 


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