Chartered accountant - Plintron
186 Points
Joined November 2015
Under Notification number 30/2012 as ammended by notification 7/2015, for few services reverse charge mechanism applies i.e service receipient has to deduct and remit the service tax amount. Aggregator service is one such service.
'aggregator' means a person, who owns and manages a web based software application, and by means of the application and a communication device, enables a potential customer to connect with persons providing service of a particular kind under the brand name or trade name of the aggregator.
Hence since this company provides service which falls under reverse charge mechanism, Service tax is not charged in the invoice and it is the responsibility of the service recipient to deduct, remit service tax.