prosanta bordoloi (AAO) (83 Points)
07 November 2013We are a Public Sector Utility , we are paying service tax as reverse Charge on the following services
(a) Rent-a Cab Services
(b) Manpower Supply
(c) Works Contract
But the reverse charge is paid if the services is received from (a) individual , HUF , or partnership firm or AOP . The service tax auditors are commenting that the reverse charge is also applicable if the services are received from Company or PSU also , Kindly clarify
Shivani Mittal
(Practice)
(425 Points)
Replied 07 November 2013
Dear Prosanta,
The following is the link for Notification No. 30/2012 dated 20.06.2012 :
https://www.servicetax.gov.in/st-notfns-home.htm
Navigation :- Year 2012; : - 30/2012-ST dt. 20-06-2012 [Eng]
Following is the link for its interpretation :
/articles/understanding-reverse-charge-mechanism-in-service-tax-17538.asp#.UnthTnC7GI8
Kindly refer the above links, hope it is useful.
CA. Narottam Kumar Rawat
(Indirect Tax Consultant)
(394 Points)
Replied 08 November 2013
Dear Prosanta,
In above three case reverse charge is applicable only in case
Service Provider is : Individual, Proprietor, Partnership Firm, LLP, AOP
and
Service Recipient is a Company or Body Corporate.
Therefore, claim of Service Tax Auditor that in these cases reverse charge is applicable where provider is corporate.
However, in case service provider is outside India, then all the cases recipient is liable to pay services tax under reverse charge (Import of Services)
CAclubindia
