Notification No. 15/0212-ST dt. 17-03-3012 which provided for reverse charge mechanism has been replaced by a new Notification No. 30/2012 dt 20-06-2012 . The new notification provides reverse charge mechanism for 10 services and also specifies percentages of service tax payable by service provider and receiver. In the case of three notified services, both service provider and receiver would be liable to pay service tax

Notification No. 30/2012-Service Tax ,

Dated-20th June, 2012 

G.S.R. 472(E)—In exercise of the powers conferred by sub-section (2) of section 68 of the Finance Act, 1994 (32 of 1994), and in supersession of  (i) notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 15/2012-Service Tax, dated the   17th  March, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i),vide number G.S.R 213(E), dated the  17th  March, 2012, and (ii) notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 36/2004-Service Tax, dated the  31st  December, 2004, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 849 (E), dated the 31st December, 2004,  except as respects things done or omitted to be done before such supersession, the Central Government hereby notifies the following taxable services and the extent of service tax payable thereon by the person liable to pay service tax for the purposes of the said sub-section, namely:—

I. The taxable services,—

(A)  (i)   provided or agreed to be provided  by an insurance agent to any person carrying on the insurance business;

(ii)   provided or agreed to be provided  by a goods transport agency in respect of  transportation  of goods by road, where the  person liable to pay freight    is,—

(a)  any factory registered under or governed by the Factories Act, 1948 (63 of 1948);

(b)  any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India;

(c)  any co-operative society established by or under any law;

(d)  any dealer of excisable goods, who is registered under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder;

(e)  any body corporate established, by or under any law; or

(f)  any partnership firm whether registered or not under any law including association of persons;

(iii) provided or agreed to be provided by way of sponsorship  to anybody corporate or partnership firm located in the taxable territory;

(iv) provided or agreed to be provided by,-

              (A) an arbitral tribunal, or

              (B) an individual advocate or a firm of advocates by way of support services, or

(C) Government or local authority by way of support services excluding,-

 (1) renting of  immovable property, and

  (2) services specified in sub-clauses (i), (ii) and (iii) of clause (a) of section 66D of the Finance Act,1994,

       to any business entity located in the taxable territory;

 (v) provided or agreed to be provided by way of renting of a motor vehicle designed to carry passengers to any person who is not in the similar line of business or supply of manpower for any purpose or service portion in execution of works contract by any individual, Hindu Undivided Family or partnership firm, whether registered or not, including association of persons, located in the taxable territory to a business entity registered as body corporate, located in the taxable territory;

(B)  provided or agreed to be provided by any person which  is located in a non-taxable territory and received by any person located in the taxable territory;

(II) The extent of service tax payable thereon by the person who  provides the service and the person who receives the service for the taxable services specified in (I) shall be as specified in the following Table, namely:-

Table

 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 in respect of  services  provided or agreed to be provided  by an insurance agent to any person carrying on insurance business Nil 100%
2 in respect of  services  provided or agreed to be provided  by a goods transport agency in respect of transportation  of goods by road Nil 100%
3 in respect of  services  provided or agreed to be provided  by way of sponsorship Nil 100%
4 in respect of  services  provided or agreed to be provided  by an arbitral tribunal Nil 100%
5 in respect of  services  provided or agreed to be provided  by individual advocate or a firm of advocates by way of legal services Nil 100%
6 in respect of  services  provided or agreed to be provided  by Government or local authority by way of support services excluding,-  (1) renting of immovable property, and (2) services specified in sub-clauses (i), (ii) and (iii) of clause (a) of section 66D of the Finance Act,1994 Nil 100%
7 (a)   in respect of  services  provided or agreed to be provided  by way of renting of a  motor vehicle designed to carry passengers on abated value to any person who is not engaged in the similar line of business

(b)   in respect of  services  provided or agreed to be provided  by way of renting of a  motor vehicle designed to carry passengers on non abated value to any person who is not engaged in the similar line of business

Nil

 

 

 

 

 

60%

100 %

 

 

 

 

 

40%

8. in respect of  services  provided or agreed to be provided  by way of supply of manpower for any purpose 25% 75 %
9. in respect of  services  provided or agreed to be provided  in service portion in execution  of works contract 50% 50%
10 in respect of  any taxable services  provided or agreed to be provided  by any person who is located in a non-taxable territory and received by any person located in the taxable territory Nil 100%

 Explanation-I. – The person who pays or is liable to pay freight for the transportation of goods by road in goods carriage, located in the taxable territory shall be treated as the person who receives the service for the purpose of this notification.

Explanation-II. – In works contract services, where both service provider and service recipient is the persons liable to pay tax, the service recipient has the option of choosing the valuation method as per choice, independent of valuation method adopted by the provider of service.

2. This notification shall come into force on the 1st day of July, 2012.

 [F.No. 334/1/2012- TRU]

(Raj Kumar Digvijay)

Under Secretary to the Government of India

Service tax payable on specified services – Corrigendum

More Under Service Tax

Posted Under

Category : Service Tax (3288)
Type : Notifications (15369) Notifications/Circulars (30573)

12 responses to “Taxable services & extent of service tax payable thereon”

  1. HARISH says:

    WHAT IS THE CODE FOR THIS

  2. Chandra Bhan Sagar says:

    Please send detail of calculation for Service Tax and what will be pass entry in books [Service Provider and Service Receiver ] about service tax on Sponsorship Fee is payable by the sponsor on reverse charge basis
    Regarding the following amount
    Sponsorship Fee is Rs.10,00,000.00
    Service Tax Rs.

  3. vinod says:

    Dear All,
    Can we credit service tax (RCM) if i paid service tax on foreign agent commission.

  4. RAJESH SHAH says:

    IF SERVICE PROVIDER (ADVOCATE) CLAIM IN BILL SERVICE TAX THEN SERVICE RECEIVER LIABLE FOR PAY IN RCM.

  5. ASHOK JAIN says:

    RECEIVED A NOTICE FROM SERVICE TAX DEPT.
    MY JOB IS FABRICATION OF CLOTH FROM YARN
    AND SUPPLYING TO TEXTILE .

  6. Piyush Somani says:

    Service provided by recruitment consultant like nokri.com is covers under notification no. 30/2012-st manpower supply services or not?

  7. Ankit says:

    We are in construction company and we are receiving manpower supply (Immanuel Commando Force Pvt Ltd) bills.

    Can you please let me know the RCM on that
    Whether RCM is applicable to pvt and ltd company or 100% we have to take in RCM

  8. R P GUPTA says:

    Notification NO 30/2012-ST, may please be up dated, about changes if any recently made by the Govt. of India . It is very helpful chart displayed as above.

    Thanks

  9. ranganath says:

    hi

    we are a manpower supply proprietary firm servicing our clients. now one of our client says now the service tax to be paid by the service provider not the receipent kindly advise.

    regards
    Ranganath
    8088309044

  10. kukku joshi says:

    dear sunil Dalvi pls explain this concept.

  11. kukku joshi says:

    we raised a invoice for services provided by us ( chartered AccountantS services) to our client who is a exporter charging ST @ 12.36%. but our client refuse to pay ST @12.36% he is sayind that he is liable to pay only 3.09% because he is expoter.
    plz reply as soon as possible is there any exemption for exporter for paying St @ 12.36% if takes servicse of A chartered accountant.

  12. Sunil Dalvi says:

    C.A. under reversecharge mechanism?

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