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Services covered under Reverse Charge Mechanism from 01.06.2015
(with % and type of person)
| S.No. | Description of service | Service Provider | Service Receiver |
| 1 | Insurance Agency Services | Insurance Agent | Any person carrying on insurance business |
| NIL (0%) | 100% (14%) | ||
| 1A | Recovery Agent Services | Recovery Agent | Banking co./ Financial inst./NBFC |
| NIL (0%) | 100% (14%) | ||
| 1B | Mutual Fund Agent/Distributor Services | Mutual Fund Agent/Distributor | Mutual Fund/ Asset Mgt Co. |
| NIL (0%) | 100% (14%) | ||
| 1C | Selling or marketing lottery ticket Services | Selling or marketing lottery Agent | Lottery distributor or selling agent |
| NIL (0%) | 100% (14%) | ||
| 2 | Transport of Goods by Road | GTA | When person liable to pay freight is Specified person |
| NIL (0%) | 100% (14%) | ||
| # GTA Abatement is now reduced to 70% from erstwhile 75% | |||
| 3 | Sponsorship Services | Any person | Body corporate/ partnership firm |
| NIL (0%) | 100% (14%) | ||
| 4 | Legal service by advocate | Individuals/ Firm of advocates | Business Entity |
| NIL (0%) | 100% (14%) | ||
| # | Excluding a business entity with a turnover up to rupees ten lakh in the preceding F.Y | ||
| 5 | Arbitral Tribunal | Arbitral Tribunal | Business Entity |
| NIL (0%) | 100% (14%) | ||
| # | Excluding a business entity with a turnover up to rupees ten lakh in the preceding F.Y | ||
| 5A | Director services | Individual | Company/ Body corporate |
| NIL (0%) | 100% (14%) | ||
| 6 | Government Support services | Govt/ Local Auth. | Business Entity |
| NIL (0%) | 100% (14%) | ||
| except the following: | |||
| a. Renting of Immovable Property, | |||
| b. Services by Department of Post by way of Speed Post, Express Parcel Post, Life Insurance and Agency Services; | |||
| c. Services in relation to aircraft or a vessel, inside or out side the precincts of a port or an airport; | |||
| d. Transportation of goods or passengers. | |||
| Government Services | NIL (0%) | 100% (14%) | |
| Yet to be notified | |||
| 7 | Renting of Motor Vehicle (WITH ABATEMENT @60%) | Individual/ HUF/ Partnership firm AOP/ LLP | Business Entity registered as body corporate |
| NIL (0%) | 100% (14%) | ||
| Renting of Motor Vehicle (WITHOUT ABATEMENT) | Individual/ HUF/ Partnership firm AOP/ LLP | Business Entity registered as body corporate | |
| 50% | 50% | ||
| 8 | Supply of manpower | Individual/ HUF/ Partnership firm AOP/ LLP | Business Entity registered as body corporate |
| NIL (0%) | 100% (14%) | ||
| 9 | Security Services | Individual/ HUF/ Partnership firm AOP/ LLP | Business Entity registered as body corporate |
| NIL (0%) | 100% (14%) | ||
| 10
|
Service Portion On execution of works contract | Individual/ HUF/ Partnership firm AOP/ LLP | Business Entity registered as body corporate |
| Value of service excluding material (Taxable 100%) |
50% (7%)
|
50% (7%)
|
|
| Original Works (Taxable 40%) | 50% (2.80%) | 50% (2.80%) | |
| Repair & Maintenance of any goods) (Taxable 70%) | 50% (4.9%) | 50% (4.9%) | |
| Maintenance, Repairing, Completion or Finishing of immovable property (Taxable 70%) | 50% (4.9%) | 50% (4.9%) | |
| 11 | Import of services | SP located in Non Taxable Teritory | Person located in Taxable Territory |
| NIL (0%) | 100% (14%) | ||
| 12 | Aggregator Services | Any Person | Any Person |
| NIL (0%) | 100% (14%) | ||
| # | Small Service Provider’ exemption of Rs. 10 lakh is not available to recipient of service. | ||
| # | Kindly refer Negative List and Exemption Notification No.25/2012 along with this chart to determine tax liability | ||
(Author is a Taxation Consultant from Faridabad associated with TAXER and can be reached at cashivanimangla@gmail.com)
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only 40% service will be taxable pertaining to original works. 505 as not mentioned in the provisions of execution of works contracts.
updated detail
Hello SRIRAM
Please read carefully. It is NOWHERE mentioned in the sheet that original work’s taxable value is 50%.
50% is the tax sharing liability and not the taxable value. Taxable value is mentioned as 40% only which is written below the word “Original Works”
If still there is any confusion please let me know.
Hello Abhishek Arora,
In case of Original works, it is mentioned in part (ii) of 10th point as 40% only & NOT 100%.
Service provider and service receiver liability will be 50% of service tax i. e. 2.8% and 2.8%
And if in first part, it is only the value of the service as it is taxed fully i.e. 100%. This is not Original Works. This is only about service portion.
There is no mistake as I understand. If there is still any confusion, please let me know.
Hello Ms Shivani
With due respect, I would like to draw your kind attention toward original work where 100% original work is mentioned, there is one mistake. It should be 40% of work done.Service provide and service receive liability will be 50% of service tax i. e. 2.8% and 2.8%
With Regards
Hello Sir,
Our company is Proprietorship and Security Service Provider also propritorship, who is liable to pay service tax
Please support
Original works contract taxable value is 40% and not 50% as mentioned. (refer serial 10)