Concept of Reverse charge mechanism on Services under GST Regime is same as it was under pre-GST regime. For better understanding first I am going to give brief explanation of Normal Charge Mechanism. Generally GST is payable by the provider of Service. For eg:- When service is provided by a Chartered Accountant to its client then in this case service provider i.e Chartered Accountant is liable to pay GST and comply with other general provisions of return filing etc. However in Reverse Charge Mechanism Service Received is made liable to pay GST and comply with other provisions of IGST Act, CGST Act and SGST Act (Hereinafter these 3 acts will be referred as “GST Act”).
Article provides detailed analysis of budget 2018 in relation personal taxation along with that comparison has also been made with budget expectations.
In this Article, author has provided his major observations from Draft Rules in respect of Master file, CBCR and Major requirements in Master file as per Draft Rules have been summarized.
In Reverse Charge Mechanism Service Receiver is made liable to pay service tax and comply with other provisions of Finance Act, 1994. Further the scope of Reverse Charge Mechanism was extended vide Notification no.-07/2015 and now persons other than service receiver and service providers are also made liable to comply with Finance Act, 1994 provisions.
In the present scenario service tax is levied on service which is governed by Chapter V of Finance Act, 1994. It states that Service tax is consumption based tax and for the purpose of determining the place where service has been consumed Place of Provision of Service Rules, 2012 are to be referred.
Export the goods and not the taxes is the common line that we hear, this statement is also valid in Finance Act, 1994 for export of service. However Rules framed under Finance Act, 1994 have defined the term Export of Service and if the conditions mentioned therein are satisfied only than the benefits are available.
The Finance Act, 2015 has empowered the Central Government to impose Swachh Bharat Cess (SBC) upto 2% on value of taxable service. Recently Central Government vide Notification No.21/2015-Service Tax, dated 6th November, 2015 has imposed SBC at the rate of 0.5% on all the taxable services w.e.f 15th November, 2015.
In this whole article, I will be discussing about practical aspects of Rule 6 of CEVR, 2000. This Rule comes into play when Price is not the sole consideration. But before talking about Rule 6, I will be discussing with my readers, what is the general provisions.
