Under the system of reverse charge, Service tax is payable by the recipient of the service for specified services and for specified portion. Secondly, the exemption of 10 lakhs is available only for service providers. Then, question is, whether the service recipient is liable to pay tax under reverse charge system even if his taxable services does not exceed 10 Lakhs. If yes, there is further doubt that : whether a person, who is having activity of trading and is not providing any kind of service, will be liable to pay service tax on service received by him which is specified under reverse charge mechanism?
Please clarify. Thanx in advance.
CAclubindia
