Service Tax under Reversal of Charge

[Rajeev Kedia]

If Service Tax not charged by service provider ( as his total revenue does not exceed Rs. 10.00 lacs) should service receipient have to pay service tax under reversal of charge in such case ?

AI Summary

Must Service Recipients Pay Tax Under Reverse Charge if Provider's Revenue is Below Rs. 10 Lakhs? A discussion on a forum addresses whether a service recipient must pay service tax under the reverse charge mechanism if the service provider's revenue does not exceed Rs. 10 lakhs. Participants clarify that for specific services such as manpower supply, security services, and works contracts, the recipient is liable for partial or full service tax payment, regardless of the provider's revenue. The threshold exemption does not apply to the recipient under reverse charge, as per Notification No. 33/2012. The liability percentages for different services are specified, and corporate recipients must pay these taxes irrespective of the provider's revenue.