Forward charge mechanism

[Bijay Shrestha]

What is Forward charge mechanism under service tax ???

How is it different from RCM ???

Please suggest.

AI Summary

Discussion on Forward Charge vs. Reverse Charge Mechanism in Service Tax and Future Implications Under GST A forum discussion addresses the forward charge mechanism under service tax, contrasting it with the reverse charge mechanism (RCM). Participants explain that in the forward charge, the service provider pays the tax to the government, whereas in RCM, the recipient is responsible for the tax. The conversation also touches on the implications of these mechanisms under the upcoming GST, with a focus on compliance and the government's role in determining the continuation of RCM, particularly for services provided by foreign entities. Participants express differing views on the necessity and future of RCM under GST.