07 August 2012
Any service provided or agreed to be provided by way of renting of a motor vehicle designed to carry passengers to any person who is not in the similar line of business or supply of manpower for any purpose or service portion in execution of works contract by any individual, Hindu Undivided Family or partnership firm, whether registered or not, including association of persons, located in the taxable territory to a business entity registered as body corporate, located in the taxable territory.
For all other services under reverse charge this clause is not applicable.
07 August 2012
The new partial reverse charge mechanism is applicable to services provided or agreed to be provided by way of (a) renting of a motor vehicle designed to carry passengers on non-abated value to any person who is not engaged in a similar business, or (b) supply of manpower for any purpose, or (c) service portion in execution of a works contract; by any individual, Hindu Undivided Family or partnership firm, whether registered or not, including association of persons, located in the taxable territory to a business entity registered as a body corporate located in the taxable territory. Thus the nature of the service and the status of both the service provider and service receiver are important to determine the applicability of partial reverse charge provisions.
Please go thro the notn, only such services are liable to be taxed both by the SERVICE PROVIDER and SERVICE RECEIVER. It is partial and also full in some cases.
Please remember that only service receiver (especially body corporate) is accountable in all these cases, even if the service provider has not collected or remitted to the Govt. It is just like income tax TDS deduction. If any particular doubt is to be cleared please write.
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