Service Tax Reverse Charge

[Jyoti Sahoo]

Dear all,

Good Morning,

Please help me in service tax reverse charge method.

Is service tax laible to pay by service receiver in reverse charge method even if service provider not covered under service tax laibility i.e he is below Rs 10,00,000/- tournover.

please help me,thanks in advance.

 

Regards,

CMA Shanmukha.

AI Summary

Service Tax Reverse Charge: Recipients Must Pay Tax Regardless of Provider's Turnover or Exemption Status A discussion on the service tax reverse charge mechanism highlights that under this system, the service recipient is liable to pay the service tax regardless of the service provider's turnover or tax liability status. Even if the service provider's turnover is below the threshold of Rs 10,00,000, which would exempt them from paying service tax, the recipient must still fulfill their tax obligations. Various contributors, including Pradeep Khatri, Sanjiv Kothari, and Varsha Mehta, emphasize that the reverse charge mechanism does not provide a threshold exemption for the service recipient, who must pay the tax irrespective of the provider's status.