Reverse charge mechanism notfn no. 30/2012

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 November 2014 In Reverse Charge Mechanism, Manpower Service ,Renting of Motor Vehicle Rent 75% & 50% tax is paying service receiver respectively.

Though service provider is not cross the exemption limit, he is liable to pay Tax or not? Please provide under which Rule?

If service provider is not paying tax will impact on service receiver? Please provide under which Rule?

Ganeshbabu K

Ganeshbabu K (Expert)
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09 November 2014 If service provider is not exceeded 10 lakhs turnover in any previous year he is not required to pay service tax.
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but service receiver have to pay his part of service tax only directly to govt.
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Note that under reversecharge service provider and service receiver liability is independent as per reversecharge notification