Reverse Charge and Partial Reverse Charge in Service Tax for
Fin. Year 15-16 amended {Notification No.7/2015-Service Tax,
Dated- 1st March, 2015}
The Reverse and Partial Reverse Mechanism of Service tax is amended and here under given at a glance how Full and Partial Reverse Charge Mechanism is working wef 01.04.2015. The extent of service tax payable by the Service provider and any other person other than the service provider (Service Recipient or any other person) liable for paying service tax for the taxable services received can be divided into two categories:
The Reverse and Partial Reverse Mechanism of Service tax is amended and here under given at a glance how Full and Partial Reverse Charge Mechanism is working wef 01.04.2015. The extent of service tax payable by the Service provider and any other person other than the service provider (Service Recipient or any other person) liable for paying service tax for the taxable services received can be divided into two categories:
A. 50% to be paid by the person providing service and 50% by any
person liable for paying service tax other than the service provider:-
a) Services provided or agreed to be provided
by way of renting of a passenger vehicle on non abated value to
any person not engaged in the similar business by individual, HUF, firm or AOP
to Body Corporate. (Revised w.e.f 01.10.2014)
b) Services provided or agreed to be provided
in service portion in execution of works contract by individual, HUF, firm or
AOP to Body Corporate.
B. 100% to be paid by any person liable
for paying service tax other than the service provider.
100 % service tax under reverse
charge mechanism is to be paid by any person liable to pay tax other than the
service provider.
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1. Services by an insurance agent to any person in insurance business.
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1A. Services by a recovery agent to a banking company or Non banking
financial Company.(Effective from 01.04.2015)
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1B.
Services by a mutual fund
agent to a mutual fund or asset management company. (Effective from
01.04.2015)
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1C. Services by a selling or marketing agent of
lottery tickets to a lottery distributor or selling agent.
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2. By a goods
transport agency for transportation of goods by road to Excise Registered
Dealer.
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3. By way of
sponsorship to anybody corporate or partnership firm.
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4. By
an arbitral tribunal to any Business entity.
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5. By individual
advocate or a firm of advocates by way of legal services to any
Business entity.
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5A. By a
director of a company or a body corporate to the said company or the body
corporate.
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6.By Govt or local authority excluding,- (1) renting of immovable
property, and (2) services specifically
excluded in section 66D to any
Business Entity.
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7(a). By way of renting of a
passenger vehicle on abated
value to any person who is not engaged in the similar
business by individual, HUF,
firm or AOP to Body Corporate.
(b) 50%-50% sharing between Service
provider and Service Recipient of Non Abated ( Person liable for service tax
Other than Service provider as
described in A (a) above
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8. 50%-50% sharing between Service
provider and Service Recipient Works Contract ( Person liable for service tax
Other than Service provider as
described in A (b) above
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9. By way of supply of manpower for any purpose or security
services by individual, HUF, firm or AOP to Body Corporate.
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10. Taxable services by any person who is located in a non-taxable
territory and received by any person located in the taxable territory.
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11. By a person involving an aggregator in any manner to any
Business Entity. (Effective from 01.03.2015)
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