Reverse charge on services by Government

[SARAVANAN RENGACHARY]

Hi,

We give our product to Government department for testing purpose as we do not have such testing facility in our concern. We pay testing charges to such Government entity and pay Service Tax under reverse charge mechanism as per NTF 30/2012 SL No. 6.

when I file the return for 15-16 II qtr, ACES says that this NTF 30/2012 serial no. 6 is not available for the return period.

please clarify whether service rendered by Government (Testing Service) on payment basis comes under reverse charge mechanism or not.

AI Summary

Reverse Charge Mechanism Clarified: Amendments Affect Testing Services by Government, Refer to Notification No. 18/2016-ST A user inquired about the applicability of the reverse charge mechanism for service tax on testing services provided by a government department. They encountered an issue when filing their 2015-16 second quarter return, as the system indicated that the relevant notification, NTF 30/2012 serial no. 6, was unavailable. A respondent clarified that the notification had been amended by Notification No. 18/2016-ST, which omitted 'support service.' The user was advised to specify 'testing service provided by Government' in their return to resolve the issue.