Reverse Charge Mechanism

[Aditya Vinay Ram]

Hi Sir/Madam,

With regard to RCM applicability, is Service provider (or) receiver liable to register to discharge the liability created u/s 68(2) of Finance Act, 1994 even if the taxable turnover does not cross 9L during the previous year ?, If yes, please give the legal reference (or) Notification details.

Thank you,

Aditya Vinay Ram

AI Summary

Reverse charge mechanism: service receivers must register and pay tax from the first invoice while providers may use notification exemption.
Reverse charge requires the service receiver to register and discharge tax liability from the first invoice for services covered by the mechanism; the turnover-based threshold exemption available to service providers does not apply to receivers. Service providers, by contrast, may claim the notification-based exemption delaying their own registration and tax liability until they satisfy the provider turnover threshold.