Liability of service tax payment for service receiver in case of Reverse charge mechnisem under works contract

[Guest]

Dear Team,

Please guide me on Liability of service tax payment for service receiver in case of Reverse charge mechnisem under works contract;

1. Whether exemption limit of Rs.10 Lacs will be available to service receiver (as a corporate).
2. If above exemption limit is available, how to check monetary limit for exemption?
3. Suppose above exemption limit will not be available than what is the guideline for payment of service tax?

 Any reference of section, notification, and guideline would be helpful for me.

AI Summary

Liability of Service Tax for Corporate Receivers in Works Contracts Under Reverse Charge Mechanism: Exemption Limit and Payment Guidelines A discussion on a forum addressed the liability of service tax payment for service receivers under the reverse charge mechanism in works contracts. The main queries involved whether the exemption limit of Rs. 10 lakhs applies to corporate service receivers and the guidelines for service tax payment if the exemption is unavailable. Responses clarified that the exemption limit does not apply to recipients, and service tax must be paid on 50% of the value as per Notification 24/2012. Additionally, service receivers must register with the Service Tax Department and may need to recover excess tax paid to contractors.