Reverse Charge

[sunil jain]

vide Not No 30/2012, service tax is required to be paid on reverse charge basis by recipient of services on certain services. One of such service is service by advocate if recipient is a business entity. As per section 65B(17), Business Entity means 'any person ordinarily carrying out any activity relating to industry, commerce or any other business or profession'  

The query is whether a co-operative Thrift & Credit society carrying on financing activities for its members only, can be termed as business entity.

 Thanks,

 CA. R.K. Aggarwal  

[PAWAN KUMAR]

Yes the same would be termed as business entity because  the definition itself clealy stipultes "any other business " which covers the credit society carrying on financing business for its memeber, Therefore would be liable for service tax under reverse charge. 

 

 

AI Summary

Cooperative Thrift & Credit Societies Qualify as Business Entities Under Section 65B(17), Liable for Reverse Charge Service Tax. A query was raised regarding whether a cooperative Thrift & Credit society, which conducts financing activities exclusively for its members, qualifies as a 'business entity' under service tax regulations. According to the definition in section 65B(17), a business entity includes any person engaged in activities related to industry, commerce, or any other business or profession. The response clarified that such a society would indeed be considered a business entity, as it falls under 'any other business,' and is therefore liable for service tax on a reverse charge basis.