Reverse charge mechanism

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 April 2013 A GTA provides services to our company and the taxable services provided by GTA is below 10 lacs.So I want to know the liability of our company, whether it will be liable to pay 50% of service tax as applicable in reverse charge or 100% of the service tax liability or there would be no liability ?
Also what will happen if other service provider falling under reverse charge mechanism provides services under same fashion ?

Thanks & Regards,
CA Hardik Avalani

CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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24 April 2013 The threshold of Rs.10lacs not applicable for service receivers who are liable under reverse charge i,e service receiver is liable to pay tax even if GTA is small service provider.

In your case service recipient is a company , has to pay 100% service tax.