Service Tax : Normally, service tax is payable by service provider by charging it in invoice raised upon the service recipient. Section 68(2) ma...
Service Tax : 1. Point of taxation under reverse charge mechanism is date of payment to the service provider provided payment must happen within...
Service Tax : In this Article Author has discussed Reverse Charge Mechanisam on Services of an insurance agent to any person carrying on insuran...
Normally, service tax is payable by service provider by charging it in invoice raised upon the service recipient. Section 68(2) makes the person receiving the service liable to pay tax. In certain cases, liability to pay service tax has been partly shifted upon the service recipient whilst in some cases it is fully shifted.
1. Point of taxation under reverse charge mechanism is date of payment to the service provider provided payment must happen within 6 months from the date of invoice otherwise point of taxation will be date of invoice. Invoice needs to be issued by the service provider within 30 days of completion of each event/service. If invoice is not issued within the specified time, point of taxation will be the date of completion of provision of service.
In this Article Author has discussed Reverse Charge Mechanisam on Services of an insurance agent to any person carrying on insurance business, Services of goods transport agency in respect of transportation of goods by road, Services by way of sponsorship , Services of an arbitral tribunal Services of advocates (individual/firm), Services of directors of a company, Support services by Government or local authority, Import of Service, Renting of a motor vehicle designed to carry passengers on abated value / non abated value, Supply of manpower for any purpose or security services & Works contract.
