Budget 2014 – Changes in Reverse Charge Mechanism Vide Notification No. 30/2012-ST Dated 20-6-2012, duly amended by Notification No. 10/2014-ST Dated 11-7-2014 (Effective From 11-7-2014 Unless Otherwise Stated)

Notification No. 10/2014-Service Tax (N.T.), Dated: July 11, 2014 amends Reverse Charge Notification No. 30/2012 ST. In relation to following services, service receiver is liable to pay service tax:
(a) Services provided by a recovery agent to a banking company/financial institution/NBFC.
(b) Services provided by a Director to a body corporate.
With effect from 01.10.2014, in renting of motor vehicle, where the service provider does not take abatement, the portion  of service tax payable by the service provider and service receiver will be 50% each.

Notification No.10/2014-Service Tax

New Delhi, the 11th July, 2014

G.S.R. 479(E).- In exercise of the powers conferred by sub-section (2) of section 68 of the Finance Act, 1994 (32 of 1994), the Central Government, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 30/2012-Service Tax, dated the 20th June, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 472 (E), dated the 20th June, 2012, namely:-

1. In the said notification,–

(i) in paragraph I, in clause (A),–

(a) after sub-clause (i), the following sub-clause shall be inserted, namely:-

“(ia) provided or agreed to be provided by a recovery agent to a banking company or a financial institution or a non-banking financial company;”;

(b) for sub-clause (iva), the following sub-clause shall be substituted, namely :-

“(iva) provided or agreed to be provided by a director of a company or a body corporate to the said company or the body corporate;”;

(ii) in paragraph II, in the TABLE,–

(a) for all the headings of the columns, the following shall respectively be substituted namely:-

“ Sl.No Description of a service Percentage of service tax payable by the person providing service Percentage of service tax payable by the person receiving the service

(1)

(2)

(3)

(4)”;

(b) after serial number 1 and the entries relating thereto, the following serial number and entries shall be inserted, namely:-

“1A. in 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 Nil

100%”;

(c) against serial number 5A of column (1) , for the entries in column (2), the following entry shall be substituted namely:-

“in 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 corporate”;

(d) in serial number 7, against item (b), in columns (3) and (4), for the existing entries, the entries “50%” and “50%” shall respectively be substituted with effect from the 1st day of October, 2014.

2. Save as otherwise provided herein, this notification shall come into force on the 11th day of July, 2014.

[F.No. 334 /15/ 2014-TRU]

(Akshay Joshi)

Under Secretary to the Government of India

Note.– The principal notification was published in the Gazette of India, Extraordinary, by notification No. 30/2012 – Service Tax, dated the 20th June, 2012, vide number G.S.R. 472 (E), dated the 20th June, 2012 and last amended by notification No. 45/2012-Service Tax, dated the 7th August, 2012 vide number G.S.R. 621 (E), dated the 7th August, 2012

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Category : Service Tax (3367)
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Tags : Budget (1956) Budget 2014 (172) service tax notifications (1086)

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