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Reverse charge mechanism: Applicability to roc filing fees

Anjaly Shaju (14 Points)

25 April 2016

Whether service tax is payable under reverse charge mechanism for payments made to Registrar of Companies?

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5 Replies

Prashant Hegde (Professional) (262 Points)
Replied 25 April 2016

RCM is not applicable to ROC payments.

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SOMNATH MALLICK (Superintendent Service Tax) (4 Points)
Replied 25 April 2016

RCM is applicable to the services only which are specified in notification Number 30/12-ST dated 20/6/12

Tribhuvan Aditya Singh (Student as well as Self-employed) (3710 Points)
Replied 25 April 2016

agreed with prashant

Jyothis (Article) (1127 Points)
Replied 02 May 2016

RCM is not direcetly applicable under RCM.

Whether it is applicable under Goverment services to business entity.

Whether MCA comes under defintion of Government department.

Whether roc filing services is taxable service under RCM.

OP CHAPLOT (chartered accountant) (22 Points)
Replied 01 April 2017

As per Circular No. 192/02/2016 ST Dated 13.04.2016 , service provided in lieu of fee charged by Government or a Local Authority - it is clarified that that activity undertaken by Government or a Local Authority against a consideration constitute a service and the amount charged for performing such service is liable to service tax. It is immaterial whether such activities are undertaken as a statutory or mandatory requirement under the law and irrespective of whether the amount charged for such service is laid down in statute or law. However exemption is granted for services provided by government for registration ,testing, calibration , safety check, etc. Further, Service provided by Govt. for a gross amount of Rs 5000 or less is also exempted vide Sr. 56 of notification no. 25/2012 ST Dated 20.06.2012 . However said exemption does not cover for services specified in sub-clauses (i) , (ii) and (iii) of clause (a) of Section 66D of Finance Act ,1994.

As per Notification No. 30/2012 ST dated 20.06.2012 as amended from time to time services provided by government or local authority except (1) renting of immovable property and (2) services specified in sub-clauses (i) , (ii) and (iii) of clause (a) of Section 66D of Finance Act ,1994 are covered under Reverse Charge Mechanism and as such 100% tax liability will be on service receiver.