Partial reverse charge mechanism

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

16 July 2012 OUR CLIENT ,a LTD. COMPANY, HAVING TURNOVER MORE THAN 10.00 LACS IS ENGAGED IN BUSINESS OF AGRICULTURE RELATED ACTIVITIES( Seddlings , Plantations etc.)

The Company is availing following services during the course of business :

1. Renting of car
2. Supply of manpower
3. Work Contract
4. Transport of goods by GTA
5. Seeking Legal Advice from Legal expert

The query is whether our client ( engaged in agriculture related activity) is liable to pay service tax under Partial Reverse Charge Mechanism in capacity of service recipient.

RENGARAJ R.K

RENGARAJ R.K (Expert)
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17 July 2012 In my opinion, your client is liable to pay the service tax under reverse charge mechanism for the services availed by him. He may be an exempted service provider but if he avails any of the 10 specified services then as a service receiver he has to pay, especially the entity is limited company. I repeat it is my opinion.