Service Tax Payable Under Reverse Charge Mechanism – w.e.f. 01st June 2016

service tax reverse charge mechanism

Sl. No. Services Provided or Agreed to be provided Abatement Effective ST Rate % payable by service provider % payable by service recipient ST Rate for Service Recipient
1

Services by a goods transport agency in respect of transportation of goods by road

70% 4.5% 100% 4.5%
2

Transport of Used Household Goods by goods transport agency

60% 6.0% 100% Not covered under RCM
3

Sponsorship Services

15% NIL 100% 15%
4

Arbitral Tribunal Services

15% NIL 100% 15%
5

Services by way of legal services by:
a. a firm of advocates or
b. an individual advocate other than a senior advocate

15% NIL 100% 15%
6

Services by Government or local authority excluding

(1) renting of immovable property, and
(2) services specified in sub-clauses (i), (ii) and (iii) of clause (a) of section 66D (Negative List) of the Finance Act,1994

15% NIL 100% 15%
7 Where Service Provider avails Abatement:

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

 

60% 6.00% NIL 100% 6.00%
8

Where service provider does not avail abatement:

Services  provided or agreed to be provided  by way of renting of a  motor vehicle designed to carry passengers on non abated value to any person who is not engaged in the similar line of business

15% 50% 50% 7.5%
9

Transport of passengers, with or without accompanied belongings, by-
a) contract carriage and air conditioned stage carriage other than motorcab.
b) a radio taxi

60% 6.00% 6%
10

Services by way of supply of manpower for security or any other purpose

0 15% 100% 15%
11

Services  provided or agreed to be provided  in service portion in execution  of works contract- Original Works

60% 6% 50% 50% 3.0%

Services  provided or agreed to be provided  in service portion in execution  of works contract towards other works like
a. Maintenance,
b. Repair,
c. Reconditioning,
d. Servicing of goods
e. Maintenance, repair, completion, finishing services of an immovable property

30% 10.50% 50% 50% 5.25%
12

Based on Location:
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

15% 100% 15%
13

Any service provided or agreed to be provided by a person involving an AGGREGATOR in any manner. Such aggregator will be liable to pay service tax under RCM

15% 100% 15%
14

Payment to Non Executive Directors

15% 100% 15%

Last updated on 05th June 2016

Dilip Kumar

+Dilip Kumar (Author and Editor of The Tax Info) is a CA Student from Hyderabad, Loves Blogging on Tax related matter.

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