Respected Kasturi Sir,
According to Notfn 30/2012-ST dated 20.06.2012
Sr No 2. 100% Services Tax is to be paid by the recipient i.e.Banking company/Financial Institution/ NBFC if the service provider is recovery agent.
Mu point is whether the recovery Agent appointed by telecommunication company i,e Reliance. Air-Tel etc who are engaged for collecting bills & from defaulted customer will also cum under RCM or there is special mention about it.
Thanks & regards
Amresh Kumar
Telecom Recovery Agents Not Under Reverse Charge Mechanism; Forward Charge Applies for Non-Financial Entities A query was raised regarding whether recovery agents appointed by telecommunication companies like Reliance and Airtel fall under the Reverse Charge Mechanism (RCM) for service tax purposes. The response clarified that according to the Finance Act and relevant notifications, recovery agent services under RCM apply only to services provided to banking companies, financial institutions, or non-banking financial companies (NBFCs). Since telecommunication companies are considered body corporates and not financial institutions, their recovery agent services do not fall under RCM but rather under Forward Charge Mechanism (FCM). Additionally, the duties described align more with collecting agent services, not recovery agent services. (AI Summary)
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