TaxTMI 
TaxTMI 
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 ?
Service Tax under Reversal of Charge
08 Aug 2012 
4 Replies 
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Reverse charge liability requires recipients to pay service tax despite provider's threshold exemption being unavailable.
Recipients under the reverse charge mechanism must pay service tax even if the provider qualifies for the small taxpayer threshold; the threshold exemption does not apply to persons liable to pay under the notification's proviso, and corporate recipients must remit the prescribed share of tax for categories such as rent a cab, manpower including security, works contract service portions, and advocates. (AI Summary)
Recipients under the reverse charge mechanism must pay service tax even if the provider qualifies for the small taxpayer threshold; the threshold exemption does not apply to persons liable to pay under the notification's proviso, and corporate recipients must remit the prescribed share of tax for categories such as rent a cab, manpower including security, works contract service portions, and advocates. (AI Summary)