CA Sandeep Kanoi

CA Sandeep KanoiReverse Mechanism and Partial Reverse Mechanism in Service Tax was First Introduced Vide Principal Notification No. 30/2012-Service Tax Dated- 20th June, 2012  and subsequently been amended vide Corrigendum Notification [F. No.334/1/2012 -TRU], dated 29-6-2012, Notification No. 45/2012-Service Tax, dated 7th August, 2012 , Notification No. 10/2014-Service Tax Dated- 11th July, 2014, Notification No.7/2015-Service Tax, Dated- 1st March, 2015 and Notification No. 18/2016-Service Tax Dated : 01/06/2016

After Considering all these Notifications We have Compiled The Reverse and Partial Reverse Mechanism Chart as Applicable from 01.06.2016

Reverse and Partial Reverse Mechanism Rate Chart with effect from 01.06.2016  and The extent of service tax payable thereon by the person who provides the service and any other person liable for paying service tax for the taxable services. List been compiled after considering Amendments made by Budget 2016, Swachh Bharat &  Krishi Kalyan Cess

Table

Sl. No.Description of a servicePercentage of service tax payable by the person providing servicePercentage of service tax payable by any person liable for paying service tax other than the service providerTax Payable
Service ProviderService Receiver
(1)(2)(3)(4)(5)(6)
1in respect of services provided or agreed to be provided by an insurance agent to any person carrying on insurance businessNil100%Nil15%
1Ain respect of services provided or agreed to be provided by a recovery agent to a banking company or a financial institution or a non-banking financial company (Effective from 01.04.2015)Nil100%Nil15%
1B.in respect of services provided or agreed to be provided by a mutual fund agent or distributor, to a mutual fund or asset management company (Effective from 01.04.2015)

Omitted vide Notification No. 18/2016-ST dated 01.03.2016 wef 01.04.2016

 

NOT APPLICABLE

1C.in respect of services provided or agreed to be provided by a selling or marketing agent of lottery tickets in relation to lottery in any manner to a lottery distributor or selling agent of the State Government under the provisions of the Lottery (Regulations) Act, 1998 (17 of 1998)

(inserted vide Notification No.7/2015-Service Tax, Dated- 1st March, 2015WEF 01.04.2016 )

Nil100%Nil15%
2in respect of services provided or agreed to be provided by a goods transport agency in respect of transportation of goods by road to Company, Partnership Firm, Registered Factory, Registered Society, co-operative society, AOP, LLP, Person Registered Under Central Excise Act, 1944 including Excise DealersNil100%Nil15%
3in respect of services provided or agreed to be provided by way of sponsorship to anybody corporate or partnership firmNil100%Nil15%
4in respect of services provided or agreed to be provided by an arbitral tribunal to any Business entityNil100%Nil15%
5in respect of services provided or agreed to be provided by a firm of advocates or an individual advocate other than a senior advocate by way of legal services

(substituted vide Notification No. 18/2016-ST dated 01.03.2016 wef 01.04.2016))

Nil100%Nil15%
5Ain respect of services provided or agreed to be provided by a director of a company or a body corporate to the said company or the body corporateNil100%Nil15%
6 in respect of services provided or agreed to be provided by Government or local authority [OMITTED by way of support services] excluding,- (1) renting of immovable property, and (2) services specified in sub-clauses (i), (ii) and (iii) of clause (a) of section 66D of the Finance Act,1994

(the words “by way of support services” has been omitted vide Notification No. 18/2016-ST dated 01.03.2016 wef 01.04.2016)

Nil100%Nil15%
7(a) in respect of services provided or agreed to be provided by way of renting of a motor vehicle designed to carry passengers on abated value to any person who is not engaged in the similar line of business by individual, HUF, firm or AOP to Body CorporateNil100%NilAfter availment of 60% abatement:

 

6%

(b) in respect of services provided or agreed to be provided by way of renting of a motor vehicle designed to carry passengers on non abated value to any person who is not engaged in the similar line of business by individual, HUF, firm or AOP to Body Corporate (Revised wef 01.10.2014)50%50%Without availment of 60% abatement:

 

7.50 %

Without availment of 60% abatement:

 

7.50%

8.in respect of services provided or agreed to be provided by way of supply of manpower for any purpose or security services by individual, HUF, firm or AOP to Body CorporateNil100%Nil15%
9.in respect of services provided or agreed to be provided in service portion in execution of works contract by individual, HUF, firm or AOP to Body Corporate  
In case of Original work50%50%After availment of 60% abatement

 

3%

After availment of 60% abatement

 

3%

In all other cases50%50%After availment of 30% abatement:

 

5.25%

After availment of 30% abatement:

 

5.25%

 

10in respect of any taxable services provided or agreed to be provided by any person who is located in a non-taxable territory and received by any person located in the taxable territoryNil100%Nil15%
11.in respect of any service provided or agreed to be provided by a person involving an aggregator in any manner to any Business Entity(Effective from 01.03.2015)Nil100%Nil15%

Explanation-I. – The person who pays or is liable to pay freight for the transportation of goods by road in goods carriage, located in the taxable territory shall be treated as the person who receives the service for the purpose of this notification.

Explanation-II. – In works contract services, where both service provider and service recipient is the persons liable to pay tax, the service recipient has the option of choosing the valuation method as per choice, independent of valuation method adopted by the provider of service.

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