Applicablity of Reverse Charge

[Saurabh Singh]

Dear All

 

1. I want to know if service provider is co. & service reciver is also co. than who is liable to pay service tax

2. If service Provider & Service Reciver both are Individual / HUF/Firm than who will pay service tax

 

 

[YAGAY andSUN]

Reply to Point No. 1: - Service Provider will charge and pay the service tax 100% while issuing the Invoice/Bill/Challan (as the case may be) upon the Service Recipient.

Reply to Point No.2: - This will be decided as the provisions mentioned in 30/2012

AI Summary

Reverse charge liability: provider must charge and remit tax when both parties are companies; other cases follow statutory provision. Where both service provider and service recipient are companies, the service provider must charge and pay service tax in full when issuing the invoice, bill or challan. For services between individuals, HUFs or firms, payment liability is determined by the applicable statutory notification and related provisions referenced by the advisor.