Service Receiver and Service provider

[Raja krishnan]

Dear Experts,

Repeatedly i am little confused about the Service Receiver and Service provider meaning as well as under RCM so any experts clarify this subject briefly please.

AI Summary

Exploring roles in Reverse Charge Mechanism: Service receiver may pay tax under Section 68(2) of Finance Act, 1994. A discussion forum addresses the roles of service receivers and providers under the Reverse Charge Mechanism (RCM) in service tax. Participants clarify that the service provider is the entity offering a service, while the service receiver is the one availing it. Under RCM, the service receiver may be liable to pay the service tax, partially or fully, instead of the provider. This mechanism is guided by Section 68(2) of the Finance Act, 1994, and specific notifications like 30/2012, which outline the tax liabilities for both parties in certain services.