payment of service tax on reversed charge method.

[vinay wakde]

As per the Notn No 45/2012-ST dt. 07.08.2012 (Amendment  to Not No 30/12-ST), the service receipient has to pay service tax on reverse charge method on the service given by the Director (100% by the service receipient) and Security service also included in Manpower supply service (75% by the service receipient).

Since, the clarification received on 07.08.2012, whether we have to pay the Interest for delay in payment of Service Tax?

Regards,

VINAY

AI Summary

Reverse charge on director and manpower services shifts tax liability to the service recipient, relieving prior-period interest exposure.
The amendment makes the service recipient liable under the reverse charge for director fees and for specified manpower services (including security), shifting tax payment to recipients; because the amendment is prospective from its effective date, commentators conclude there is no liability for service tax, interest, or penalty for the prior period when reverse charge was not in effect.