Exemption limit to service provider

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 June 2014 exemption limit to service provider under reverse charge mechanism(joint charge mechanism) like security service provided by firm to company.plese reply this question thanks in advance

Nikhil Kaushik

Nikhil Kaushik (Expert)
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08 June 2014 to the service provider the limit is Rs 10 lakhs...but for service receiver there is no exemption.

ROSHAN JAIN

ROSHAN JAIN (Expert)
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09 June 2014 The liability of the service provider and service recipient are different and independent of each other. So in case service provider is availing exemption owing to turnover being less then Rs. 10 Lac, he shall not be obliged to pay any tax. However, the service recipient shall have to pay service tax which he is required to pay under the partial reverse mechanism charge.

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