Services under 100% RCM

[Amresh kumar]

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

AI Summary

Reverse charge mechanism does not apply to recovery agents collecting for non-financial corporates; such services remain under forward charge.
The notification amendment narrowed RCM coverage to recovery agent services provided to banking companies, financial institutions or non-banking financial companies. Recovery agents engaged by telecommunications companies, which are ordinary body corporates, therefore do not fall within the RCM provision and their services remain subject to the forward charge mechanism. The functions of collecting agent service are distinct from Recovery Agent Service and do not bring such agents within the RCM scope.