reversecharge

[veera swamy]

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

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.