GANAPATHI A S (ACCOUNTS OFFICER) (24 Points)
30 August 2013Dear Experts,
Kindly clarify as to whether service tax reverse charge mechanism is applicable on Techincal / Engineering consultancy services received within India and also clarify whether the service tax payment needs to be made by the service receiver also.
Sweta agarwala
(student)
(48 Points)
Replied 11 September 2013
No reverse charge is not applicable in this case because reverse charge is applicable in case of legal service and legal service means any service provided in relation to advice consultancy or assistance in any branch of law,in any manner and includes representational services before any court, tribunal or authority.
Here service receiver is not liable to pay any service tax amount.
Gautam Joshi
(Partner)
(361 Points)
Replied 12 September 2013
Dear Ganpathi,
Techincal / Engineering consultancy services don't fall under legal services, manpower supply services or works contract services. In fact, they should be covered under consulting engineer services which is not covered under reverse charge.
Hence, the service receiver is not liable to pay service tax on payment made for such services.
Best Wishes.
CAclubindia
