TaxTMI 
TaxTMI 
Service Tax Reverse Charge
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....ervice Tax Reverse Charge<br> Query (Issue) Started By: - Jyoti Sahoo Dated:- 13-9-2012 Last Reply Date:- 28-9-2012 Service Tax<br>Got 6 Replies<br>Service Tax<br>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....
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.... 10,00,000/- tournover. please help me,thanks in advance. Regards, CMA Shanmukha. Reply By Pradeep Khatri: The Reply: Under partial reverse charge mechanism, the service provider and the service recipient is liable to pay service tax to the extent of their liability as prescribed in the Service Tax Law. This has two aspects, namely:- * If the service provider has not crossed the threshold l....
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....imit, then, he is not liable to pay the service tax. * But there is no such exemption available to service recipient under PRCM. He has to pay the service tax at any cost on his liability. Reply By SANJIV KOTHARI: The Reply: Service receiver is liable to pay tax under reverse charge irrespective of the status of service provider whether eligible for service tax payment or not. Regards Sanji....
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....v Reply By Jyoti Sahoo: The Reply: Thank You Mr.Pradeep & Mr.Sanjay for your valuble feedback. Reply By varsha mehta: The Reply: Section 68(2) of the Act does not provide Threshold exemption of 10 Lakhs in case of Reverse Charge mechanism where service tax is payable by person other than service provider (i.e. service receiver). This means service tax liable to pay by service receiver in rev....
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....erse charge method even if service provider not covered under service tax laibility. Reply By NK SHETE: The Reply: I support the views of Pradeep Khatri, SANJIV KOTHARI and varsha mehta Reply By Neha Kankani: The Reply: why reverse charge method is used for service tax?<br> Discussion Forum - Knowledge Sharing ....