Reverse Charge

[sunil jain]

We are a cooperative society registered in Delhi, please clarify whether society is liable to pay service tax on reverse charge basis on services like advocate, man power, security service, work contract etc.  These services are taxable on reverse chargeable basis if provided to "Business entity". Society provides T/C services-viz depsit from members and lending to members and depositing surplus with banks.

Further in case of man power, securtiy service, business  entity should be "Body Corporate", Whether Coop society registered under Delhi Coop Society Act would be construed as "Body Corporate".

 

Thanks,

CA. R.K. Aggarwal

AI Summary

Reverse charge liability: cooperative societies may be excluded for manpower, security and works contracts but liable for advocate fees.
Reverse-charge liability depends on recipient classification: a cooperative society under the State Cooperative Societies Act is not a body corporate and thus not liable under reverse charge for manpower, security or works-contract services that apply only to bodies corporate; however, where the society engages in commerce-like activity it may attract tax on payments to advocates, subject to notification conditions for partial reverse charge.