TaxTMI 
TaxTMI 
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.
Service Receiver and Service provider
03 Sep 2015 
4 Replies 
12388 Views Asked by
Reverse charge mechanism makes the service receiver liable to pay service tax where law shifts payment obligation to the recipient.
The document explains that a service provider renders services and normally bears service tax liability, while the service receiver avails services. The reverse charge mechanism makes the recipient liable to pay service tax for specified services, with notifications allocating full or partial payment responsibility between provider and receiver. Import of services rules require the recipient in the taxable territory to discharge tax when the provider is outside the taxable territory, and the taxable person is defined by the service tax rules and implementing notifications. (AI Summary)
The document explains that a service provider renders services and normally bears service tax liability, while the service receiver avails services. The reverse charge mechanism makes the recipient liable to pay service tax for specified services, with notifications allocating full or partial payment responsibility between provider and receiver. Import of services rules require the recipient in the taxable territory to discharge tax when the provider is outside the taxable territory, and the taxable person is defined by the service tax rules and implementing notifications. (AI Summary)