SERVICES UNDER REVERSE CHARGE UNDER GST REGIME
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
Dated:- 26-5-2017
The concept of reverse charge was introduced in the service tax regime vide Notification No. 30/2012, dated 20.06.2012 and came into effect from 20.06.2012.
Under reverse charge, the recipient of service is to pay the tax to the credit of the Central Government. The reverse charge is of two types – Full reverse charge and partial reverse charge. Under the full reverse charge, the service recipient is to pay 100% of the tax on the value of services received by him. Under partial reverse charge, the service recipient is to pay certain percentage of tax on the value of taxable service and the balance amount is to be payable by the service provider.
The Notification No. 30/2012 has met many amendments and as on date the following services come under the net of reverse charge mechanism-
* in respect of services provided or agreed to be provided by
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
directly or indirectly
* in respect of services provided or agreed to be provided by Government or local authorityexcluding,-
(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 – 100%;
* 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 – 100%;
* n respect of services provided or agreed to be provided by way of supply of manpower for any purposeor security services – 100%;
* 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 other than non-assessee online recipient- 100%;
* n respect of any service provided or agreed to be provided by a person involving an aggregator in any manner – 100%;
*
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
V of Finance Act, 1994 applies the reverse charge only to the services received by the recipient of services. But the GST Act makes the reverse charge applicable to both services and goods.
The provisions of the Act and the rules made there under applicable to the service provider are also applicable to the service recipient under reverse charge mechanism. In this Act it is provided that the service recipient, who receives services or goods from the unregistered person, is liable to pay service tax under reverse charge mechanism and for this purpose he is to raise an invoice.
Services coming under Reverse charge under GST
Under the provisions of GST there is no partial reverse charge mechanism. The GST Council in its 14th Council meeting held on 19.05.2017 approved the list of services coming under reverse change mechanism. Nearly 12 services are coming under reverse charge mechanism. The service recipients in all these case are liable to pay the entire tax (no partial reverse charg
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
aw;
(d) any person registered under CGST/SGST/UTGST Act;
(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;
(g) casual taxable person
3
Services provided or agreed to be provided by an individual advocate or firm of advocates by way of legal services, directly or indirectly
An individual Advocate or firm of advocates
Any business entity
4
Services provided by an arbitral tribunal
An arbitral tribunal
Any business entity
5
Sponsorship services
Any person
Anybody corporate or partnership firm
6
Services by Government or local authority excluding-
1.renting of immovable property; and
2. services specified below-
(i) services by the Department of posts by way of speed post, express parcel post, life insurance and agency services provided to a person other than Government;
(ii) services in relation to an aircraft or a vessel inside or outside the precincts of a po
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
section (1) of section 13 of the Copyright Act, 1957 relating to original literary, dramatic, musical or artistic works
Author or music composer, photographer, artist etc.,
Publisher, Music company, producer
12
Radio taxi or passenger transport services provided through electronic commerce operator
Tax driver or rent a cab operator
Any person – tax is payable by electronic commerce operator by 100%.
The above list is subject to changes.
Reply By yateen vyas as =
Sir,
In GST credit of Input service tax paid by service receiver will be available or not.
As in rate chart of GST they said 5 % with NO ITC.
Dated: 26-5-2017
Reply By MARIAPPAN GOVINDARAJAN as =
The input tax credit available to the service provider will also be applicable under Reverse charge.
Dated: 27-5-2017
Reply By SUDHIR KINHALE as =
Sir,
In GST REGIME credit of Cash paid which is paid through reverse charge by service receiver will be available or not.
As in rate chart of GST they said 5 % with NO IT
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
Am a Individual Man Power Supply to Municipal Administration and Milk Cooperative Society and all Government Department and local Authority in Tamilnadu Government. Who is liable for GST Tax?
Dated: 14-7-2017
Reply By satbir singh wahi as =
sir
For renting of motor cab 5% no itc , what does this mean.
Dated: 23-7-2017
Reply By Anubhav Agrawal as =
Sir,
IF GTA is using the service of Truck Owners by hiring the Trucks, do they need to pay tax on reverse charge as they are using the service of an unregistered person.
Dated: 17-8-2017
Reply By Mukesh Meena as =
We are a government body (Govt. Hospital) have contract with manpower suppy agency to provide paramedical staff for 6 month. As per agreement, agency will pay monthly salary to worker and will submit bill with all paid challans like esi, epf, cgst etc. We will bear CGHT payment as per bill of service provider. But there is confusion between our department and ser. provider for tax pay challan.. Service provider said tha
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =