service receiver have liability even service provider (individual or partnership firm)charge service tax?

[Mathurthi RamKumar]

Dear all,

Greetings.. Kindly tell me if service receiver have liability even service provider (individual or partnership firm)charge service tax? (Service receiver is a Pvt Ltd Company)

Regards

M.RamKumar

[Ganeshan Kalyani]

It depend upon the type of service covered under reverse charge. In case of rent a can service , the service provider shall charge service tax of his portion and the receiver shall have to pay his portion of service tax.

In case of partial reverse charge such as above then even though service provider charge service tax on bill the service receiver is liable to pay the tax.

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of Shri Ganeshan

[YAGAY andSUN]

Only services which have been incorporated in Notification No. 30/2012-ST would have an impact of liability under reverse charge.

[Ganeshan Kalyani]

Reproducing extract from an article penned by VSV & Co for ready reference.

Following services are covered under RCM/partial RCM underRule 2(2)(d)(i) of Service Tax Rules, 1994 read with Notification No. 30/2012-ST:

1. Insurance Agent Service

2. (Banking) Recovery Agent Service

3. Goods Transport Agency Service

4. Sponsorship Service

5. Legal Service

6. Arbitral Tribunal Service

7. Services by Directors of the body corporate to the body corporate

8. Support Services provided by Government/Local Authority

9. Rent-a-Cab Service

10. Manpower Supply Service

11. Security Service

12. Service portion in execution of Works Contract

13. Import of Taxable Services

AI Summary

Private Companies' Service Tax Liability Depends on Service Type; Reverse Charge Mechanism Key per Notification No. 30/2012-ST. A query was raised about whether a service receiver, specifically a private limited company, has liability for service tax when the service provider, an individual or partnership firm, charges service tax. Responses highlighted that liability depends on the type of service and whether it falls under reverse charge mechanisms. For certain services like rent-a-cab, both provider and receiver have tax liabilities. Reference was made to Notification No. 30/2012-ST, which lists services subject to reverse charge, including insurance agent, goods transport, and legal services, among others. The discussion emphasized understanding specific service tax rules and notifications.