Hello fellas!!
I want to know if the liablity of service tax in reverse charge mechanism still remains if the service provider has not yet exhausted his basic exemption limit i.e Rs.10,00,000/- or hasn't been registered with Service Tax Department.
Example:- M/s A, a firm of advocates, has not got itself registered with STD, provides service to M/s B, who is liable to pay ST on Reverse Charge Mechanism. Whether M/s B would still be liable to pay ST as M/s A has not got itself registered?
| Originally posted by : Rajat Chawla | ||
 |
Who is liable to pay ST on Reverse Charge Mechanism. Whether M/s B would still be liable to pay ST as M/s A has not got itself registered? |
 |
Yes. Under RCM liability of ST has been enthrusted upon Service Receiver.
Service Receiver is liable to pay. Even if the Exemption limit is not crossed by the Service Provider.
Yes... tax has to deducted under reverse charge.... irrespective of whether the service provider is registered or not .....
CAclubindia
