Reverse charge mechanism for service tax?

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Jomy

Jomy (Querist)
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15 December 2013 can anyone please explain what is reverse charge mechanism?

Ganeshbabu K

Ganeshbabu K (Expert)
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15 December 2013 1)Normally, service tax is payable by person providing the service.

2)Section 68(2) makes provision for reverse charge i.e. making person receiving the service liable to pay tax.

3)Provision can be made that part of tax will be paid by service receiver and part by service provider.

4)Provisions relating to reverse charge are contained in Notification No. 30/2012-ST dated 20-6-2012.

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http://www.dateyvs.com/service-tax/person-liable-to-pay-service-tax-and-reverse-charge/reverse-charge-in-service-tax/