09 December 2013
what is reverse charge mechanism? is it important to get registered under service tax even if we are service receiver?
please explain this concept with suitable illustration.
09 December 2013
Normally, service tax is payable by service provider. However, in case of specified services, paradigm of service tax is shifted on service receiver(notification no.30/2012-ST) And import of services is one of such specified service. It can be made clear from the following example: A ltd. receives some services from XYZ Inc.(US company). In this case, service tax shall be borne by A ltd.(being the receiver) & accordingly, it shall be required to get registered under service tax laws.
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