UPDATED LIST OF REVERSE CHARGE MECHANISM
As we all are aware, Service Receiver also needs to pay his % of service tax under Reverse Charge Mechanism.Here is the updated list for know the % share of Service Receiver and Service provider in order to have better control over on the payments of statutory dues.
| Sr no. | Nature of Services | Service Provider | Service Receiver | |||||
| Person | % Sharing of Tax | Person | % Sharing of Tax | |||||
| 1 | Insurance Agent Services | ANY | Nil | Any | 100% | |||
| 1A | Recovery Agent Service (11.07.2014) | ANY | Nil | Banks/FI /NBFC |
100% | |||
| 1B | Services provided by a mutual fund agent or distributor, to a mutual fund or asset management company (w.e.f. 01-04-2015) |
ANY | Nil | ANY | 100% | |||
| 1C | Service provided by a selling or marketing agent of lottery tickets to a lottery distributor or selling agent (w.e.f. 01-04-2015) |
ANY | Nil | ANY | 100% | |||
| 2 | Transport of goods by Road (30% Taxable) (w.e.f. 01-04-2015) | Any (Except Individual) | Nil | Any (Except individual) | 100% | |||
| 3 | Sponsorship Services | Any | Nil | Firm or Company | 100% | |||
| 4 | Service by Arbitral Tribunal | Tribunal | Nil | Any | 100% | |||
| 5 | Advocate Services | Ind./Firm | Nil | Any (Business Entity Ser. T/o > 10 lacs) |
100% | |||
| 5A | Service by Directors | Individual | Nil | Company/ Body Corporate | 100% | |||
| 6 | Services by Government or Local Authority(except renting Service) | Govt. or local authority | Nil | Any (Business Entity) | 100% | |||
| 7 | Renting of Motor vehicle for passenger | |||||||
| A | If No Abatement taken(01.01.2014) | Ind./HUF/Firm/ AOP | (50%) | Company | (50%) | |||
| Earlier Rate was 60% for SP and 40% TO SR | ||||||||
| B | If Abatement is taken( Eligible for 40% Service Tax Payment) | Ind./HUF/Firm/ AOP | Nil | Company | 100% | |||
| 8 | Supply of Manpower we.f 01-07-2012 | Ind./HUF/Firm/ /AOP |
Nil | Company | 100% | |||
| Securities Services w.e.f 07-08-2012 | ||||||||
| Before 01-04-2015 , Rate was 25% to SP and 75% To SR | ||||||||
| 9 | Works Contract Services (on which VAT is leviable) | |||||||
| A | Works Contract in relation to Original Work | Ind./HUF/Firm AOP | (50%) | Company | (50%) | |||
| ( Eligible for 40% Service Tax Payment) | ||||||||
| B | Other than above (9A) Works Contract like Repairs or Maintenance, etc. | Ind./HUF/Firm/ AOP | (50%) | Company | (50%) | |||
| ( Eligible for 70% Service Tax Payment) | ||||||||
| 10 | Import of Services | Any | Nil | Any | 100% | |||
| 11 | Service provided or agreed to be provided by a person involving an | Any | Nil | Any | ||||
| aggregator in any manner
|
||||||||
Point of Taxation
Thus, effectively as per said Rule, Point Of Taxation of services under Reverse Charge is the date of payment of Invoice or in case invoice not paid with in six month months, the point of taxation would be the date of invoice.
After Amendment
Union Budget 2014-15 has amended the first proviso of Rule 7 to provide that point of taxation in respect of reverse charge will be the payment date or the first day that occurs immediately after a period of three months from the date of invoice, whichever is earlier.
For any Clarification and Suggestion please contact Deepakrathore.8888@Gmail.com
