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REVERSE CHARGE MECHANISM
The scheme of partial reverse charge has been introduced for three services where the service provider is either an individual or HUF or partnership Firm or LLP or association of person and a recipient is corporate.[ Point No. 7,8,9 of the Table below ]
The extent of service tax who receive the services and who provides the services shall be as follows:-
| S.N. | SERVICES | % OF SERVICE TAX BY SERVICE PROVIDER | % OF SERVICE TAX BY SERVICE RECEIVER |
| 1 | Insurance business | Nil | 100 |
| 2 | GTA | Nil | 100 |
| 3 | Sponsorship | Nil | 100 |
| 4 | Arbitral tribunal | Nil | 100 |
| 5 | Individual Advocate | Nil | 100 |
| 6 | Support Service by govt. or local authority | Nil | 100 |
| 7 | i] Renting of motor vehicle for passenger on abated valueii] on non abated value | Nil
60 |
100
40 |
| 8 | Supply of manpower or Security Services | 25 | 75 |
| 9 | Work contract | 50 | 50 |
| 10 | Non taxable territory to taxable territory | Nil | 100 |
| 11 | Service provided or agreed to be provided by director of company to the said company | Nil | 100 |
(Submitted by CA. Sanjeev Singhal)
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why not for single person consultancy in other fields such as engineering? It is a nuisance to file service tax returns and so I am not expanding my services..If they can do this for an advocate why not for engineering consultant also? My income will increase and so income tax collection will go up and Govt is benefitted..we have people with narrow minds making rules.