Service tax
This query is : Resolved
24 July 2012
who is service receiver liable to pay service tax
who is service receiver liable to pay service tax
24 July 2012
with effect from 01/07/2012, all the service providers not covered in NEGATIVE LIST are liable for Service Tax. At the same time, all the service receivers falling under REVERSE CHARGE (See rule 8 to 14) are exigible to Service Tax.
25 July 2012
Following services are under reverse charge where where whole or part of the service tax is paid by service receiver-
1. Services provided or agreed to be provided by an insurance agent to any person carrying on insurance business
2. Services provided or agreed to be provided by a goods transport agency in respect of transportation of goods by road
3. Services provided or agreed to be provided by way of sponsorship
4. Services provided or agreed to be provided by an arbitral tribunal
5. Services provided or agreed to be provided by individual advocate or a firm of advocates by way of legal services
6. Services provided or agreed to be provided by Government or local authority by way of support services excluding,-(1) renting of immovable property, and (2) services specified in sub-clauses (i), (ii) and (iii) of clause (a) of section 66D of the Finance Act,1994
7. Services provided or agreed to be provided by way of renting of a motor vehicle designed to carry passengers on abated value to any person who is not engaged in the similar line of business
8. Services provided or agreed to be provided by way of renting of a motor vehicle designed to carry passengers on non abated value to any person who is not engaged in the similar line of business
9. Services provided or agreed to be provided by way of supply of manpower for any purpose
10. Services provided or agreed to be provided in service portion in execution of works contract
11. Any taxable services provided or agreed to be provided by any person who is located in a non-taxable territory and received by any person located in the taxable territory
Service tax shall be paid as follows-
In respect of services specified in 1-7, service receiver is liable for 100% of the service tax
point no. 8- 40% by service receiver, 60% service provider
point no. 9- 75% by service receiver, 25% service provider
point no. 10- both will pay 50%-50%
point no. 11- 100% by service provider
1. Services provided or agreed to be provided by an insurance agent to any person carrying on insurance business
2. Services provided or agreed to be provided by a goods transport agency in respect of transportation of goods by road
3. Services provided or agreed to be provided by way of sponsorship
4. Services provided or agreed to be provided by an arbitral tribunal
5. Services provided or agreed to be provided by individual advocate or a firm of advocates by way of legal services
6. Services provided or agreed to be provided by Government or local authority by way of support services excluding,-(1) renting of immovable property, and (2) services specified in sub-clauses (i), (ii) and (iii) of clause (a) of section 66D of the Finance Act,1994
7. Services provided or agreed to be provided by way of renting of a motor vehicle designed to carry passengers on abated value to any person who is not engaged in the similar line of business
8. Services provided or agreed to be provided by way of renting of a motor vehicle designed to carry passengers on non abated value to any person who is not engaged in the similar line of business
9. Services provided or agreed to be provided by way of supply of manpower for any purpose
10. Services provided or agreed to be provided in service portion in execution of works contract
11. Any taxable services provided or agreed to be provided by any person who is located in a non-taxable territory and received by any person located in the taxable territory
Service tax shall be paid as follows-
In respect of services specified in 1-7, service receiver is liable for 100% of the service tax
point no. 8- 40% by service receiver, 60% service provider
point no. 9- 75% by service receiver, 25% service provider
point no. 10- both will pay 50%-50%
point no. 11- 100% by service provider
25 July 2012
PLEASE SEE THE FOLLOWING NOTIFICATION REGARDING THE SERVICE TAX PAYABLE BY THE RECEIVER OF SERVICE.
THE FIRST PERCENTAGE IS SERVICE PROVIDER AND SECOND % IS PAYABLE BY THE RECEIVER.
Sl.No. Description of a service Percentage of service tax payable by the person providing service Percentage of service tax payable by the person receiving the service
1 in respect of services provided or agreed to be provided by an insurance agent to any person carrying on insurance business Nil 100%
2 in respect of services provided or agreed to be provided by a goods transport agency in respect of transportation of goods by road Nil 100%
3 in respect of services provided or agreed to be provided by way of sponsorship Nil 100%
4 in respect of services provided or agreed to be provided by an arbitral tribunal Nil 100%
5 in respect of services provided or agreed to be provided by individual advocate or a firm of advocates by way of legal services Nil 100%
6 in respect of services provided or agreed to be provided by Government or local authority by way of support services excluding,-(1) renting of immovable property, and (2) services specified in sub-clauses (i), (ii) and (iii) of clause (a) of section 66D of the Finance Act,1994 Nil 100%
7 (a) in respect of services provided or agreed to be provided by way of renting of a motor vehicle designed to carry passengers on Nil 100 %
abated value to any person who is not engaged in the similar line of business (b) in respect of services provided or agreed to be provided by way of renting of a motor vehicle designed to carry passengers on non abated value to any person who is not engaged in the similar line of business 60% 40%
8. in respect of services provided or agreed to be provided by way of supply of manpower for any purpose 25% 75 %
9. in respect of services provided or agreed to be provided in service portion in execution of works contract. 50% 50%
10 in respect of any taxable services provided or agreed to be provided by any person who is located in a non-taxable territory and received by any person located in the taxable territory. Nil 100%
THE FIRST PERCENTAGE IS SERVICE PROVIDER AND SECOND % IS PAYABLE BY THE RECEIVER.
Sl.No. Description of a service Percentage of service tax payable by the person providing service Percentage of service tax payable by the person receiving the service
1 in respect of services provided or agreed to be provided by an insurance agent to any person carrying on insurance business Nil 100%
2 in respect of services provided or agreed to be provided by a goods transport agency in respect of transportation of goods by road Nil 100%
3 in respect of services provided or agreed to be provided by way of sponsorship Nil 100%
4 in respect of services provided or agreed to be provided by an arbitral tribunal Nil 100%
5 in respect of services provided or agreed to be provided by individual advocate or a firm of advocates by way of legal services Nil 100%
6 in respect of services provided or agreed to be provided by Government or local authority by way of support services excluding,-(1) renting of immovable property, and (2) services specified in sub-clauses (i), (ii) and (iii) of clause (a) of section 66D of the Finance Act,1994 Nil 100%
7 (a) in respect of services provided or agreed to be provided by way of renting of a motor vehicle designed to carry passengers on Nil 100 %
abated value to any person who is not engaged in the similar line of business (b) in respect of services provided or agreed to be provided by way of renting of a motor vehicle designed to carry passengers on non abated value to any person who is not engaged in the similar line of business 60% 40%
8. in respect of services provided or agreed to be provided by way of supply of manpower for any purpose 25% 75 %
9. in respect of services provided or agreed to be provided in service portion in execution of works contract. 50% 50%
10 in respect of any taxable services provided or agreed to be provided by any person who is located in a non-taxable territory and received by any person located in the taxable territory. Nil 100%
25 July 2012
Sir,
Thank you very much
Thank you very much
25 July 2012
i agree with rangaraj sir
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