26 October 2012
There is no liability for a local authority under reverse charge in all the 12 services therein RCM is applicable..... However in case the service provider is located in a nontaxable territory i.e. state of J&K or out of India and the nagar palika is located in taxaxble territory, then in such case nagar palika is liable to pay service tax thereon under RCM.
As regards point of time refer rule 7 of POT Rules.
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