Service Reverse Charge Method - Renting Service

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S Sivasalapathy (Querist)
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04 December 2010 Whether reverse charge method under Section 65(105)(zzzz)is applicable to Renting of immovable property services received by a manufacturing company where service provider ( Landlord ) is exempt from Service tax (below Rs.10 lakhs )

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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05 December 2010 10 lakhs exemption only for service providers in India and not outside. Reverse charge no exemption on amount.

Is Immovable propeprty in India?

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S Sivasalapathy

S Sivasalapathy (Querist)
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06 December 2010 Sir.

Thanks for your reply. The property is in India only. Is reverse charge method applicable?

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Shyam Lal Naik

Shyam Lal Naik (Expert)
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20 December 2010 No,

Reverse charge is not applicable. So far service rendered in India, reverse charge mechanism is applicable to GTA service only.