Service tax- reverse charge

there is no limit of 10 lakhs for service receiver in reverse charge mechanism. i dont know your 2nd question ,answer

i want to get update on this query

For your 1st query- there is no limit of 10 lakhs for service receiver. You will be covered under reverse charge without any monetary limit

For your 2nd query- The act talks about service receiver . Service receiver is a person who has the obligation to make the payment. I think the same will be covered under reverse charge.

Under the Reverse Charge Mechenism (RCM) the Service Receiver is given no Basic Exemption Limit and also not given any Exemption from paying his part of Service Tax Liablity.

No exemptions under reverse charge mechanism. The service receiver has to pay service tax for services covered under reverse charge mechanism. So, if a person receives such services, assessee has to get registered and make payment through cash( not cenvat credit) .

Dear Kaushal,

Service recipient is liable to pay the service tax under reverse charge system even if his taxable services does not exceed Rs.10 Lakhs. All the service recipient are liable to pay the service tax under the reverse charge system. For detail please refer the notification no. 15/2012 dt.17.03.2012 of Service Tax.

https://www.cbec.gov.in/ub1213/st15-2012.htm

Kaushal,

As per notification 33/2012 ST, exemption to small service providers of Rs 10 lakhs is available only for service providers. Hence Service receipient is required to pay tax from Rupee one.

Even though the service receipient does not have any taxable service, he needs to get registered as service receipient and pay the tax.

Natesh