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Full reverse charge under service tax

komal (Chartered Accountant) (86 Points)

14 December 2015

Whether full reverse charge services are required to show in st 3 by service provider who is not paying service tax on services provided?

If yes where to show in ST 3?

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8 Replies

Ajay Chandramouli (Article Assistant ) (334 Points)
Replied 15 December 2015

Hi Komal,

It is better to Disclose the turnover and claim the exemption under 30/2012 (Rverse charge notification) so that there is full disclousre of turnover.

Show it in the B1.1 and again claim exemption in the B1.9

Hope it is clear

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Deepesh Jhawar (Chartered Accountant) (41 Points)
Replied 15 December 2015

In my opinion, FULL revrese charge services are not required to be disclosed in ST-3.

You may notice that in A.10, there is no option for a service provider under FULL reverse charge.

Also, in B1.9, deduction is with respect to providing exempted services and not full reverse charge services. Hence, there is no place in ST-3 for disclosure of FULL reverse charge service.

Niraj Kumar Sinha (Sr. Officer, SPSIL) (648 Points)
Replied 15 December 2015

No. You need not to show your service value in Return as service provider, if your provided service comes under RCM.

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Ajay Chandramouli (Article Assistant ) (334 Points)
Replied 15 December 2015

Dear All,

As the service is taxable in the hands of service reciver it may tantamounts to exempted service in the hands of Service provider. There is no specific column for such disclosure but it is a practice of better disclosure so that at any moment of litigation in future date it does not amount to suppression of facts as it matches with our revenue statements which is the main base for the department to litigate the issue.

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Ajay Chandramouli (Article Assistant ) (334 Points)
Replied 15 December 2015

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Ajay Chandramouli (Article Assistant ) (334 Points)
Replied 15 December 2015

Jatin Grover (Audit Assistant) (359 Points)
Replied 20 December 2015

I agree with Ajay Chandramouli, that services which are under full reverse charge should be disclosed by Service Provider and exemption should be claimed by mentioning Notification No.-30/2012 as exemption notification.