Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

query

SUDHIR & PRADEEP JI (CA FINAL+LLB + DISA) (2299 Points)

14 June 2010

WHAT IS REVERSE CHARGE IN SERVICE TAX

Reply
Follow
Share

1 Replies

Jeevesh Mehta (Advocate- Corporate Commercial & Indirect Tax Advisory) (861 Points)
Replied 15 June 2010

Dear Pradeep,

Reverse charge under service tax arises when the service receiveer is required to pay the service tax. Like in the case of Import of Services. A person in India importing certain services and making payment to the foreign service provider, in such case Indian service receiver would be required to pay ST on the amouont remitted by him to the foreign service provider. It is called reverse charge machanism.

Regards

Jeevesh MEhta

9811617186