reversecharge

[veera swamy]

In ST reverse charge provider exempted up to 10 lakhs. If so receiver liability to pay 50% or 100%

[Rajagopalan Ranganathan]

Sir,

If the service provider does not cross the exemption limit of ₹ 10 lakhs, he need not pay his portion of service tax. The service receiver has to pay his portion of service tax since the exemption limit is not applicable to service receiver who pays service tax on reverse charge.

[Ganeshan Kalyani]

I agree with Rajagopalan sir.In fact the liability of service provider is under his registration and service receiver is liable to pay tax under his registration. liability of both service provider and service recipient is independent and different.

[Mahir S]

Yes sir, the query has rightly been explained.

AI Summary

Service Receiver Liable for Tax Under Reverse Charge, Even if Provider is Exempted Up to 10 Lakhs. In a discussion forum about service tax under the reverse charge mechanism, a query was raised about the liability of service receivers when the service provider is exempted up to 10 lakhs. It was clarified by respondents that if the service provider does not exceed the 10 lakh exemption limit, they are not required to pay their portion of the service tax. However, the service receiver must still pay their portion of the tax, as the exemption does not apply to them. The responsibilities of the service provider and receiver are independent and distinct.