Bhupendra Rohilla

Meaning of RC Services covered under Partial RC Types of RC Bhupendra Rohilla

 Section 68(1) specify that ST in respect of taxable services shall be paid by the service provider.  Section 68(2) makes provisions for reverse charge.  Meaning of Reverse Charge: Normally ST is paid by the service provider but in case of notified services, the liability to pay service tax is shifted from SP to SR subject to the provisions of section 68(2) read with Rule 2(1)(d) of ST Rules,1994, it is called Reverse Charge Mechanism. Bhupendra Rohilla

There are two types of reverse charge: Full Reverse Charge:  Under the full reverse charge, the liability to pay service tax on specified taxable service is shifted upon service receiver in full. Partial Reverse Charge:  Under the partial reverse charge, both SP and SR are liable to pay service tax in the portion as specified in Rule 2(1)(d) of ST Rules, Bhupendra Rohilla

 RC and Registration C and POT C and Payment C and CENVAT C and SSP Exemption Bhupendra Rohilla

Normal case:  As per notification 26/2005 as last amended by notification no. 9/2008, any provider of taxable service whose aggregate value of taxable service in a financial year exceeds 9 lakh rupees shall make an application for registration. Reverse charge case:  However, if a person is required to pay ST under reverse charge, it is mandatory to get registered with the department immediately irrespective of the fact that the limit of Rs 9 lakh has not been crossed. Bhupendra Rohilla

POT under Normal case:  POT shall be invoice date subject to condition that invoice is issued in accordance with Rule 4A of the ST Rules,  If payment is received before the invoice is issued, the POT shall be date of receiving the payment. POT under Reverse Charge:  POT shall be date of payment.  If payment is not made within a period of 3 months from the date of invoice, the POT shall be the 1st day that occurs immediately after a period of 3 months from the date of invoice. Bhupendra Rohilla

Normal case  Service tax liability can be paid through cash/ cheque( Sub. to realization); or  By using CENVAT credit available (Rule 3(4) (e) of CCR- 2004). Reverse Charge case:  ST under reverse charge can be paid only in cash/ cheque.  CENVAT credit cannot be used to discharge ST liability under reverse charge. (Rule 3(4) (e) of CCR-2004). Bhupendra Rohilla

 In respect of input service where whole of the service tax is liable to be paid by the recipient of service, credit shall be allowed after the service tax is paid.  However in case of partial reverse charge in order to avail credit, it is required to pay ST and invoice value first. Bhupendra Rohilla

 SSP exemption exempts taxable services of aggregate value not exceeding ten lakh rupees in any financial year from the whole of the service tax leviable thereon under section 66B.  SSP exemption shall not apply to such value of taxable services in respect of which service tax shall be paid by such person and in such manner as specified under sub-section (2) of section 68 of the said Finance Act read with Service Tax Rules, Bhupendra Rohilla

SService provided by an insurance agent to any person carrying on the insurance business. SService provided or agreed to be provided by GTA to specified 6 person. Q who is liable to pay ST;Q If person liable to pay ST is in non taxable territory, then who is liable to pay ST. SServices by way of sponsorship to corporate or partnership firm. llegal services by an arbitral tribunal, or an individual advocate or a firm of advocates to any business entity. Note: If in point No. 2-4, SR is in non taxable territory, the liability to pay ST shall be on SP. Bhupendra Rohilla

 Service provided by a person located in non taxable territory to a person in taxable territory.  Services by a recovery agent to a banking company or a financial institution or a non banking financial company NNo. 9/2014- ST.  Service provided or agreed to be provided by a director of a company or a body corporate to the said company or the body corporate. NNo. 9/2014- ST.  Support services provided or agreed to be provided by Government or local authority. Bhupendra Rohilla

Services provided : by To  Service provider and service recipient both are located in taxable territory.  F Individual HUF Partnership Firm AOI Business Entity registered as Body Corporate e Bhupendra Rohilla

Name of Services Supply of Manpower or Security Services SP- 25% SR-75% Services of Works ContractSP- 50% SR-50% Renting of motor vehicle to a person not in similar line of business: (a) With abatement (b) Without abatement (c) W.e.f NNo.10/2014 SP- 100% SR-Nil SP- 40% SR-60% SP- 50% SR-50% Bhupendra Rohilla

Name : Bhupendra Rohilla M No. : Presented By:- Bhupendra Rohilla