The document discusses reverse charge mechanism (RCM) in service tax in India. [1] RCM was introduced in 2005 and applies to certain specified services. Over time, the list of services covered under full or partial RCM has expanded and now contains 11 services. [2] The document then lists the 11 services currently covered under full or partial RCM and specifies the applicable percentage of service tax to be paid by the service receiver rather than the service provider. This includes services like insurance auxiliary, recovery agent, sponsorship, legal and director services.

1. CA Pratik Mehta
APMH & ASSOCIATE LLP
Chartered Accountants

2. 2
 Brief History of Reverse Charge
 RCM introduced w.e.f 01.01.2005 via notification
no 36/2004.
 The Reverse Charge was introduced in Service Tax
vide Budget of the year 2005-2006. At that point of
time there was only few services which was covered
under Reverse Charge. However, with the passage
of time this list has been expanded and at present
this list contains 11 services into it which covers
both full Reverse Charge and Partial Reverse
Charge.

3. 3
 (1) Every person providing taxable service to any person shall pay
service tax at the rate specified in section [66B] in such manner
and within such period as may be prescribed.
 (2) Notwithstanding anything contained in sub-section (1), in
respect of [such taxable services as may be notified] by the
Central Government in the Official Gazette, the service tax
thereon shall be paid by such person and in such manner as may
be prescribed at the rate specified in section [66B] and all the
provisions of this Chapter shall apply to such person as if he is
the person liable for paying the service tax in relation to such
service.
 [Provided that the Central Government may notify the service and
the extent of service tax which shall be payable by such person
and the provisions of this Chapter shall apply to such person to
the extent so specified and the remaining part of the service tax
shall be paid by the service provider.]
 Notification No. 30/2012-ST, dated 20th June, 2012
w.e.f 01.07.2012

4. Service Provider
•Insurance Agent
Service Receiver
•Any person carrying
on Insurance
business
4
Sr.
No.
Description of a service
(Insurance Auxiliary Service)
w.e.f 01.07.2012
Percentage of
service
Percentage of
service tax
payable by any
person liable for
paying service
tax other than
the service
provider
1.
In respect of services
provided or agreed to be
provided by an insurance
agent to any person carrying
on insurance business
NIL 100%

5. 5
Service Provider
•Recovery Agent
Service Receiver
• Banking company or a
financial institution or a
non-banking financial
company
Sr.
No.
Description of a service
(Recovery Agent services )
w.e.f 11.07.2014
Percentage of
service
Percentage of
service tax
payable by any
person liable for
paying service
tax other than
the service
provider
1A.
In respect of services
provided or agreed to be
provided by a recovery agent
to a banking company or a
financial institution or a non-
banking financial company
NIL 100%

6. 6
Sr.
No.
Description of a service
(Selling or marketing agent
services)
w.e.f 01.04.2016
Percentage of
service
Percentage of
service tax
payable by any
person liable for
paying service
tax other than
the service
provider
1C.
In respect of services
provided or agreed to be
provided by a selling or
marketing agent of lottery
tickets in relation to lottery in
any manner to a lottery
distributor or selling agent of
the State Government under
the provisions of the Lottery
(Regulations) Act, 1998 (17 of
1998)
NIL 100%

7. 7
Service Provider
•Selling or
marketing
agent of
lottery tickets
Service Receiver
•Lottery
distributor or
selling agent
of the State
Government

8. 8
Service Provider
•Goods
Transport
Agency
Service Receiver
• Factory
• Society (Inc. Co-Op Hsg)
• Registered Dealer of Excisable
Goods
• Body Corporate
• Partnership Firm
• AOP
Sr.
No.
Description of a service
(GTA Services)
w.e.f 01.07.2012
Percentage of
service
Percentage of
service tax
payable by any
person liable for
paying service
tax other than
the service
provider
2.
In respect of services provided
or agreed to be provided by a
goods transport agency in
respect of transportation of
goods by road.
NIL 100%

9. 9
Sr.
No.
Description of a service
(Sponsorship Services)
w.e.f 01.07.2012
Percentage of
service
Percentage of
service tax
payable by any
person liable
for paying
service tax
other than the
service provider
3.
In respect of services provided
or agreed to be provided by
way of sponsorship.
NIL 100%
Service Provider
• Any Person
Service Receiver
•Any body corporate
or partnership firm
located in the
taxable territory

10. 10
Service Provider
• Arbitral Tribunal
Service Receiver
• Business Entity
located in TT with
turnover exceeding
Rs. 10 lakhs in PY
Sr.
No.
Description of a service
(Arbitral tribunal Services)
w.e.f 01.07.2012
Percentage of
service
Percentage of
service tax
payable by any
person liable for
paying service
tax other than
the service
provider
4.
In respect of services provided
or agreed to be provided by an
arbitral tribunal.
NIL 100%

11. 11
Sr.
No.
Description of a service
(Legal Services)
w.e.f 01.04.2016
Percentage of
service
Percentage of
service tax
payable by any
person liable for
paying service
tax other than
the service
provider
5.
In respect of services provided
or agreed to be provided by an
individual advocate or firm of
advocates by way of legal
services, directly or indirectly
NIL 100%
Service Provider
• Individual
• Firm other than
representational services by
senior advocates
Service Receiver
•Business Entity having
turnover exceeding Rs.10
Lakhs located in taxable
territory in P.Y

12. 12
Sr.
No.
Description of a service
(Director services)
w.e.f. 07.08.2012
Percentage of
service
Percentage of
service tax
payable by any
person liable for
paying service
tax other than
the service
provider
5A.
In respect of services provided
or agreed to be provided by a
director of a company or a
body corporate to the said
company or the body
corporate
NIL 100%
Service Provider
• Director
Service Receiver
• Company
• Body Corporate

13. 13
Sr.
No.
Description of a service
(Government services)
w.e.f 01.07.2012
Percentage of
service
Percentage of
service tax
payable by any
person liable for
paying service
tax other than
the service
provider
6.
In respect of services
provided or agreed to be
provided 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 of the
Finance Act, 1994
NIL 100%
Service Provider
• Government
• Local Authority
Service Receiver
•Business Entity located in TT
with turnover exceeding Rs.
10 lakhs in PY

14. 14
Sr.
No.
Description of a service
(Renting of a motor vehicle)
w.e.f 01.07.2012
Percentage
of service
Percentage
of service
tax payable
by any
person liable
for paying
service tax
other than
the service
provider
7.
(a)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.
(b) in respect of 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
Nil
50%
100 %
50%

15. 15
Service Provider
• Individual
• HUF
• Proprietary Firm
• Partnership Firm
• AOP
Service Receiver
• Business Entity
registered as body
corporate located in the
taxable territory

16. 16
Sr.
No.
Description of a service
(Supply of manpower & Security
Services)
w.e.f .01.07.2012
Percentage
of service
Percentage of
service tax
payable by any
person liable for
paying service
tax other than
the service
provider
8.
In respect of services provided
or agreed to be provided by way
of supply of manpower or
security service for any purpose
or security services
Nill 100 %
Service Provider
• Individual
• HUF
• Proprietary Firm
• Partnership Firm
• AOP
Service Receiver
• Business Entity
registered as body
corporate located in the
taxable territory

17. 17
Sr.
No.
Description of a service
(Works Contract Services)
w.e.f .01.07.2012
Percentage
of service
Percentage of
service tax
payable by any
person liable for
paying service
tax other than
the service
provider
9.
In respect of services provided
or agreed to be provided by way
of works contract
50% 50%
Service Provider
• Individual
• HUF
• Proprietary Firm
• Partnership Firm
• AOP
Service Receiver
• Business Entity registered
as body corporate
located in the taxable
territory

18. 18
Sr.
No.
Description of a service
(Import of Services)
w.e.f .01.07.2012
Percentage
of service
Percentage of
service tax
payable by any
person liable for
paying service
tax other than
the service
provider
10.
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
Nill 100%
Service Provider
• Any Person
Service Receiver
• Any person

19. 19
Sr.
No.
Description of a service
(Aggregators Services)
w.e.f .01.03.2015
Percentage
of service
Percentage of
service tax
payable by any
person liable for
paying service
tax other than
the service
provider
11.
In respect of any service provided
or agreed to be provided by a
person involving an aggregator
in any manner
Nill 100%
Service Provider
• Any Person
Service Receiver
• Any Person

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