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 and SUN]

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

Reverse charge mechanism: receiver liable for service tax on advocate firms and advocates, not on chartered accountants or consultants.
The reverse charge mechanism applies to services rendered by advocates, including firms of advocates, so the service recipient is liable to pay service tax on those services; chartered accountants and consultants are not covered by that notified entry.