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

Reverse charge liability: service receiver remains liable to pay tax even when the provider is below exemption threshold.
Under the reverse charge mechanism, a service provider's exemption does not relieve the service receiver; the receiver must pay tax under reverse charge because provider and recipient liabilities under their respective registrations are independent.