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<h1>Reverse charge on recovery agent services places tax liability on the service recipient for banking and financial entities.</h1> Services supplied by a recovery agent to a banking company, a financial institution or a non-banking financial company are taxable under reverse charge from 11 July 2014; the service provider has no tax liability and the service recipient is 100% liable to discharge the service tax. Applicable recipients are defined by the statutory definitions of banking company, financial institution and non-banking financial company.