CA Ahtesham Alam

Please find below chart depicting the liability of Service Receiver & Service Provider under Reverse Charge Mechanism in very precise and simplified manner. It shall be very handy in day to day working of professionals under industry.

Sl. No.

Description of service

Provided

Liability of

By

To

Service Provider

Service Receiver

1

Insurance Insurance Agent Any person carrying on insurance business

Nil

100%

2

Transportation  of goods by road Goods Transport Agency (GTA) Any person other than individual

Nil

100%

3

Sponsorship By any person Anybody corporate or partnership firm

Nil

100%

4

Arbitral Arbitral Tribunal Any business entity

Nil

100%

5

Legal service Individual Advocate or firm of advocates Any business entity

Nil

100%

5A

Service of Director Director Its company

Nil

100%

6

Support Service Government or local authority  Any business entity

Nil

100%

7

Hiring of vehicle on abated value Non-Corporate Entity Corporate Entity.

Nil

100%

Hiring of vehicle on non-abated value Non-Corporate Entity Corporate Entity.

60%

40%

8

Supply of manpower for any purpose & Security Service Non-Corporate Entity Corporate Entity.

25%

75%

9

Works Contract Non-Corporate Entity Corporate Entity.

50%

50%

10

Any taxable services i.e. imported services Any person located in a non-taxable territory Any person located in the taxable territory

Nil

100%

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0 responses to “Liability of Service Receiver & Provider under Reverse Charge Mechanism”

  1. T.K. Sharma says:

    sir,

    1) Service Tax Provider & Receiver of Different

  2. jerome chamminikodath says:

    I want to know whether a religious trust who has given commercial buildings for rent should collect service tax from the tenants.

  3. Manjunath S says:

    hai, i have client of security service, they have many no of clients, including corporate and non corporate, then how to riase the invoice for both of them,should i claim full rate of tax or to take partial abatment, please give clarification for this issue

  4. sagar says:

    I have two queres.

    1) What is the abated & Non – abated Value in Hiring of Vechicle.

    2) In reverse mechanism service receiver can avail the service tax in cenvat

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