Goods and Services Tax : GST on rental income has evolved significantly since 2017, with several transactions now covered under Reverse Charge Mechanism. T...
Goods and Services Tax : Reverse Charge Mechanism under GST is increasingly becoming technology-driven with stricter GSTN validations, reconciliations, and...
Goods and Services Tax : The guide clarifies when GST liability shifts to the recipient under RCM for GTA and renting services. The key takeaway is that co...
Goods and Services Tax : The analysis confirms that export of legal services qualifies as zero-rated supply under Section 16 of the IGST Act. Refund of unu...
Goods and Services Tax : GSTR-3B में लागू नए सिस्टम नियम के तहत RCM ITC अब सीमित कर द...
Goods and Services Tax : Explore the key recommendations made by the GST Council during its 54th meeting, including changes in GST rates, GoM formations, a...
Goods and Services Tax : Advocates' Tax Bar Association urges the Finance Minister to abolish Reverse Charge Mechanism for registered dealers, citing burde...
Goods and Services Tax : Maharashtra Tax Practitioners’ Association has made a representation on Confusion related to Levy of GST under RCM on Reside...
Goods and Services Tax : उपरोक्त विषय में निवेदन है कि इस समय माइनिंग इंडस...
Goods and Services Tax : CBIC issues 43 notifications on 30th September 2019 to give effect to Recommendations made by GST Council in its 37th Meeting. Mos...
Goods and Services Tax : The Court ruled that authorities cannot deny ITC by disregarding binding CBIC circulars. It held that cross-charging of ITC is leg...
Service Tax : The issue was whether the service provider was liable to pay service tax on manpower services. The Tribunal held that liability re...
Goods and Services Tax : TN AAR rules that traders of sand, blue metals, and bricks from unregistered suppliers are not liable for GST under Reverse Charge...
Goods and Services Tax : Calcutta High Court overturns CESTAT's remand order, directing a refund to Ipsen Technologies. A typographical omission by the Tri...
Service Tax : Kolkata CESTAT sets aside service tax demand on Maninder Singh, citing recipient's payment under RCM and invalidity of demand base...
Goods and Services Tax : Government of India corrects any property to any immovable property in Union Territory Tax Rate Notification issued on October 8, ...
Goods and Services Tax : The Ministry of Finance issued a corrigendum to Notification No. 09/2024, clarifying any property to any immovable property....
Goods and Services Tax : The Government of India corrects the phrase any property to any immovable property in the recent Central Tax Rate Notification....
Goods and Services Tax : The Ministry of Finance amends GST notification, exempting metal scrap suppliers from provisions of notification No. 5/2017-Centra...
Goods and Services Tax : Notification No. 06/2024 updates reverse charge mechanism for metal scrap transactions, applicable from 10th October 2024....
We know that the rate of abatement and applicability of RCM (Reverse Charge Mechanism) play an important role while making payment of service tax to vendor and payment of service tax under RCM. In the article we have compiled all the provisions and notifications applicable for Abatement on service tax and Reverse charge mechanism.
Notification No. 15/2012 covers following kind of services under reverse charge along with the percentage of tax liability payable by service provider and service receiver respectively. We have divided the services covered by the Notification under five categories for ease of reference.
Reverse Charge Mechanism – Normally, service tax is payable by person who provides the service. Section 68(2) makes provision for reverse charge i.e. making person receiving the service liable to pay tax. Authority for reverse charge u/s 68(2) of Finance Act, 1994
The levy of Service Tax on Road Transportation Service has always remained subject matter of uncertainty and litigation. Earlier, The Finance Act, 1997 had levied Service Tax on Goods Transport Operators w.e.f. 16-11-1997 which was subsequently withdrawn after nation-wide strike.
Service Tax is a vital part of Indirect Tax Structure of India. In simple words it can be spelled as tax on specified services provided by the Service Provider. Usually the person providing the Services is liable to pay Service tax but here comes an exception, where the service provider is not liable or is partially liable to pay service tax & the recipient has to bear the liability to pay the tax to the Government on behalf the Service Provider. This concept with dual understanding is discussed as follows:
CA Nitin Gupta 1. INTRODUCTION OF REVERSE CHARGE MECHANISM Reverse charge mechanism is not a new concept in service tax. Under the reverse charge mechanism, instead of service provider, the service receiver is liable to pay service tax. But with effect from 1.7.2012 a new scheme of taxation is being brought into effect whereby the […]
The Reverse Charge was introduced in Service Tax vide Budget of the year 2005-2006. At that point of time there was only one service which was covered under Reverse Charge. However, with the passage of time this list has been expanded and at present this list contains 11 services into it which covers both Reverse Charge and Partial Reverse Charge.
CA Pardeep Kumar Relevant Notifications:- Notification no. 30/2012 dated 26.06.2012 later updated by notification no. 45/2012 dated 07.08.2012 w.e.f. 01/07/2012 Dual System of Service Tax Payment A. For certain services, service recipients needs to pay 100% Service Tax – 9 Services B. For certain services, both service recipients & service providers are liable to pay […]
The concept of reverse charge was also prevailing in the positive list era where certain cases/services were specified where the service recipient was made liable to pay the service tax instead of service provider. However concept of partial reverse charge was introduced w.e.f. 1.7.2012
