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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0 responses to “Reverse Charge – Mechanism- Ready Reckoner”

  1. kannan says:

    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.

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