Scribd
Upload
44 views2 pages

Reverse Charge Under Service Tax

1) Under the new reverse charge mechanism applicable from July 1, 2012, certain services provided to business entities will require the service recipient to pay service tax instead of the service provider. 2) The document lists the services that fall under reverse charge based on the status of the service recipient - body corporate, partnership firm, or individual. For body corporates and firms, this includes transport of goods by road, legal services, sponsorship, and certain support services. 3) For individuals, reverse charge applies only if the individual is a factory registered under the Factory Act or a dealer of excisable goods, and applies to transport of goods by road, legal services, and certain support services.

Uploaded by

Mohit Gaba
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
44 views2 pages

Reverse Charge Under Service Tax

1) Under the new reverse charge mechanism applicable from July 1, 2012, certain services provided to business entities will require the service recipient to pay service tax instead of the service provider. 2) The document lists the services that fall under reverse charge based on the status of the service recipient - body corporate, partnership firm, or individual. For body corporates and firms, this includes transport of goods by road, legal services, sponsorship, and certain support services. 3) For individuals, reverse charge applies only if the individual is a factory registered under the Factory Act or a dealer of excisable goods, and applies to transport of goods by road, legal services, and certain support services.

Uploaded by

Mohit Gaba
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

N.K.GABA & CO.

CHARTERED ACCOUNTANTS
REVERSE CHARGE MECHANISM UNDER SERVICE TAX
We present below some of the changes in Service Tax, to be applicable w.e.f. 1st July 2012. Reverse Charge
Mechanism will be applicable on some services, whereby the Service Recipient will be liable to pay Service
Tax, get himself registered with Service Tax Department, and file Service Tax Returns. The list of Services to
be brought under this mechanism (based on the status of Service Recipient), are as follows:
STATUS OF SERVICE
RECIPIENT

SERVICE RECEIVED

BODY CORPORATE
Service provided by Goods Transport
(Business Entity: any
Agency, in respect of Transport of
person ordinarily carrying Goods by Road,
out any activity relating
to industry, commerce or
any other business)

CONDITIONS
1. Person liable to pay
freight is Body Corporate
2. Gross Amt Charged on
Consignment in single
Goods Carriage more
than Rs.1500/- OR Gross
Amt charged for
Transportation all such
goods for single consignee
more than Rs.750/- .

Service Tax
payable by
Receiver on 25% of
the value of
Freight.

The Turnover of Body


Services provided or agreed to be
Corporate should be
provided by Individual Advocate or Firm
more than Rs.10 Lakh in
of Advocates by way of Legal Service
preceding year

Whole Service Tax


to be paid by
Receiver

Services provided or agreed to be


provided by way of Sponsorship

Whole Service Tax


to be paid by
Receiver

Services provided or agreed to be


provided by Govt or Local Authority by
way of Support Services

Other than Renting of


Immovable Property,
Postal Services,
Transport,

Service Provided or agreed to be


provided in Service Portion in Execution
of Works Contract by
Individual/HUF/Firm

Service by way of Renting of Motor


Vehicle designed to carry passengers,
by Individual/HUF/Firm

Services provided or agreed to be


provided by way of supply of manpower
for any purpose, by
Individual/HUF/Firm

visit us at www.nkgaba.com

Whole Service Tax


to be paid by
Receiver
50% to be paid by
Provider, 50% by
Receiver

If Abatement Claimed by
Provider, Cenvat Credit
not available

40% of Service Tax


to be paid by
Receiver, NIL by
Provider

If Abatement not claimed,


Cenvat Credit Available

40% to be paid by
Receiver, 60% by
Provider
75% to be paid by
Receiver and 25%
by Provider

Follow us on: www.facebook.com/nkgaba

N.K.GABA & CO.


CHARTERED ACCOUNTANTS

STATUS OF SERVICE
RECIPIENT

SERVICE RECEIVED

PARTNERSHIP FIRM
Service provided by Goods Transport
(Business Entity: any
Agency, in respect of Transport of
person ordinarily carrying Goods by Road,
out any activity relating
to industry, commerce or
any other business)

1. Person liable to pay


freight is Partnership
Firm
2. Gross Amt Charged on
Consignment in single
Goods Carriage more
than Rs.1500/- OR Gross
Amt charged for
Transportation all such
goods for single consignee
more than Rs.750/- .

Service Tax
payable by
Receiver on 25% of
the value of
Freight.

The Turnover of Firm


Services provided or agreed to be
should be more than
provided by Individual Advocate or Firm
Rs.10 Lakh in preceding
of Advocates by way of Legal Service
year

Whole Service Tax


to be paid by
Receiver

Services provided or agreed to be


provided by way of Sponsorship

Whole Service Tax


to be paid by
Receiver

Services provided or agreed to be


provided by Govt or Local Authority by
way of Support Services

STATUS OF SERVICE
RECIPIENT

CONDITIONS

SERVICE RECEIVED

INDIVIDUAL
Service provided by Goods Transport
(Business Entity: any
Agency, in respect of Transport of
person ordinarily carrying Goods by Road,
out any activity relating
to industry, commerce or
any other business)

Other than Renting of


Immovable Property,
Postal Services,
Transport,

CONDITIONS
1. Applicable to
Individual only if
Individual is: Factory
Registered under Factory
Act, OR Dealer of
Excisable Goods
Registered under Excise
Act, 1944.
2. Gross Amt Charged on
Consignment in single
Goods Carriage more
than Rs.1500/- OR Gross
Amt charged for
Transportation all such
goods for single consignee
more than Rs.750/- .

The Turnover of
Services provided or agreed to be
Individual should be
provided by Individual Advocate or Firm
more than Rs.10 Lakh in
of Advocates by way of Legal Service
preceding year
Services provided or agreed to be
provided by Govt or Local Authority by
way of Support Services

visit us at www.nkgaba.com

Whole Service Tax


to be paid by
Receiver

Other than Renting of


Immovable Property,
Postal Services,
Transport,

Service Tax
payable by
Receiver on 25% of
the value of
Freight.

Whole Service Tax


to be paid by
Receiver
Whole Service Tax
to be paid by
Receiver

Follow us on: www.facebook.com/nkgaba

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy