11 October 2012
If a service recepient is partnership, then what is the liability of reverse charge of service tax? whether partnership firm has to register under reverse charge of service tax ?
11 October 2012
Notification no. 15/2012-ST dated 17.3.2012 has been issued wherein the taxable services/ cases are prescribed on which reverse charge method will be applicable. The following services are prescribed in respect of which the recipient will be liable to pay the service tax –
● services provided by an insurance agent to any person carrying on insurance business ● services provided by a goods transport agency in respect of transportation of goods by road ● services provided by way of sponsorship ● services provided or by an arbitral tribunal ● services provided by individual advocate ● services provided by way of support service by Government or local authority ● taxable services provided by any person located in a non-taxable territory and received by any person located in the taxable territory
11 October 2012
Three services are being prescribed under notification no. 15/2012-ST in respect of which both service provider and service recipient will be considered as person liable to pay the service tax on the basis of a fixed percentage. This amendment will be applicable only where the service provider is an individual/firm/LLP and the recipient is the body corporate. The services and portion of service tax payable by provider and recipient of services are as follows:-
S. no. Description of Service Service Recipient Service Provider 1 Hiring of motor vehicle for passengers – ● with abatement ● without abatement
100% 40%
NIL 60% 2 Supply of man power 75% 25% 3 Works contract 50% 50%
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