payment of service tax on reversed charge method.

[vinay wakde]

Whether service provided by  a Chartered Accountant, legal advisors, consultant other than Individual Advocates  to the Company is also covered under reverse charge mechanism w.e.f. 01.07.2012 and the service receipient has to pay the service tax?

Regards,

VINAY 

[JAMES PG]

No.

[YAGAY andSUN]

No, you are not required to pay service tax under RCM on such services.

[Vivek Harsh]

No............its applicable only on notified  services such as insurance, gta, etc

[Vijay kumar]

Dear Sir, please refer to Notification 30/2012-ST dated 20.6.2012. There is liability in terms of IV(B) / sl.no.5 of the table in respect of firm of advocates also, apart from individual advocate. Thus, in case of service rendered by a firm/individual advocate, service tax has to be paid by the receiver on 100% basis. Apparently, chartered accountants and consultants are not covered therein. In any case, please go through the said notification for specific service.

AI Summary

Chartered Accountants and Consultants Services Exempt from Reverse Charge Mechanism Under Notification 30/2012-ST; Advocates Included A query was raised regarding whether services provided by Chartered Accountants, legal advisors, or consultants to companies fall under the reverse charge mechanism (RCM) for service tax payment effective from July 1, 2012. Four responses were received, all indicating that these services are not subject to RCM. However, one response highlighted Notification 30/2012-ST, which specifies that services by a firm or individual advocate require the service recipient to pay the service tax. Chartered accountants and consultants are not included in this notification, suggesting no RCM obligation for these services.