Mamraj & Co
Chartered Accountants
[email protected],www.mamrajandco.com
Service Tax Reverse Charge
1. Insurance agent services
Service provider – Any business entity
Receiver – any business entity
Service tax – payable by recipient – 12.36% (14% after 1st june2015)
2. Transportation of goods by road
Service provider – GTA (who issues consignment note)
Service receiver – 6 categories specified
 Any factory
 Any society registered under Society Registration Act, 1860
 Any Co-operative society established by or under any law
 Any dealer of excisable goods
 Anybody corporate
 Any partnership firm
Service provider liability – NIL
Service receiver liability – 3.09% (i.e. after 75% abatement on 12%)
-3.50% after 1st june 2015 (i.e. after 75% abatement on14%)
3. Sponsorship service (in territory)
Service provider – any
Service recipient – firm or company
Provider rate – NIL
Rate recipient – 12.36% (14% after 1st june2015)
4. Import of service
Service provider – any
Service recipient – firm or company
Provider rate – NIL
Rate recipient – 12.36% (14% after 1st june2015)
Disclaimer: It is advised to take expert advice before taking any decision based on these informations.
We owe no responsibility. This note is basically for the inner working of the firm Mamraj & Co. Take
permission from the firm before copying, circulating or distributing any contents mentioned herein.
Page 1
Mamraj & Co
Chartered Accountants
[email protected],www.mamrajandco.com
5. Service by an arbitunal tribunal ( a sole arbitrator or panel of arbitrators)
Service provider – tribunal
Service recipient – any
Provider rate – NIL
Rate recipient – 12.36% (14% after 1st june2015)
6. Support service by Govt. and Local Authority
Service provider – Govt. or Local authority
Service recipient – any
Provider rate – NIL
Rate recipient – 12.36% (14% after 1st june2015)
7. Renting of Motor Vehicle for passenger
Service provider – Individual/HUF
Service recipient – Company
(non abated value)
Provider rate – 6.18 (i.e. 50 % of 12.36), 7% after 1st june 2015
Rate recipient – 6.18 (i.e. 50 % of 12.36), 7% after 1st june 2015
(Abated value)
Provider rate – NIL
Rate recipient – 4.944 (i.e. after 60% abatement on 12.36%)
-5.60% after 1st june 2015
8. Supply of man power (this is not applicable if it is a piece rate man power)
Service provider – Individual/HUF/Firm/AOP
Service recipient – Company
Provider rate – 3.09 (3.50 % after 1st June 2015)
Rate recipient – 9.27 (10.50% after 1st june 2015)
9. Services by Director
Service provider – Individual
Service recipient – Company
Provider rate – NIL
Rate recipient – 12.36% (14% after 1st june2015)
Disclaimer: It is advised to take expert advice before taking any decision based on these informations.
We owe no responsibility. This note is basically for the inner working of the firm Mamraj & Co. Take
permission from the firm before copying, circulating or distributing any contents mentioned herein.
Page 2
Mamraj & Co
Chartered Accountants
[email protected],www.mamrajandco.com
10.
Work contract
Service provider is Individual/HUF/Firm+
Service receiver is company
YES*Labour and Material is specified separately
YES
Reverse Charge is 50% of service portion i.e
service portion – 50% x 12.36% = liability of
service receiver
- 50% x 12.36% = liability of
service provider
NO
Original work
(new structures, additions,
erection, commissioning or
installation of plant and
machinery etc.)
Maintenance/Repair
/Restore/Reconditio
-ning of any goods
40% of total amount is
deemed as service portion
70% of total amount is
deemed as service
portion
50% X
12.36%
for
service
receiver
50% X
12.36%
for
receiver
50% X
12.36%
for
service
provider
Disclaimer: It is advised to take expert advice before taking any decision based on these informations.
We owe no responsibility. This note is basically for the inner working of the firm Mamraj & Co. Take
permission from the firm before copying, circulating or distributing any contents mentioned herein.
Page 3
50% X
12.36%
for
provider
Mamraj & Co
Chartered Accountants
[email protected],www.mamrajandco.com
Note: Wherever 12.36% is mentioned it shall be replaced by 14% after 1st june 2015. Swach bharat cess
to be added in the calculation when it will be notified by the government. Also refer to point of taxation
rules to find the precise date of change to 14%.
Disclaimer: It is advised to take expert advice before taking any decision based on these informations.
We owe no responsibility. This note is basically for the inner working of the firm Mamraj & Co. Take
permission from the firm before copying, circulating or distributing any contents mentioned herein.
Page 4