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.
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Services under Reverse Charge in GST regimeGST India Law
GST Council has approved list of services that will be under reverse charge in the meeting held at Srinagar, Jammu & Kashmir on 19 May 2017. The information is being public immediately after the GST Council’s decision and it will be subject to further vetting during which the list may undergo some changes.
This document summarizes 13 services that are subject to reverse charge mechanism under GST. It details the service provider, recipient of service, and percentage of GST payable. Some key services include legal services provided by advocates to businesses, services provided between related parties like directors and companies, and transportation services where the supplier or recipient is located outside of India. The reverse charge applies at 100% rate for most services, with the recipient business responsible for paying the tax instead of the supplier.
The document summarizes key changes to India's service tax regime introduced in the 2012 budget, including expanding the scope of services covered, increasing the general rate to 12%, and introducing a reverse charge mechanism. Under the reverse charge mechanism, liability to pay service tax is shifted wholly or partially from service providers to service receivers for certain specified services. This places additional compliance burdens on service receivers. The changes aim to prepare taxpayers for the proposed Goods and Services Tax to be introduced in April 2013.
This slide contains GST RCM topic notes. These are simplied and short notes (Summary) on the topic. So student who are reading for the first time are adviced to go through books also
The presentation contains the history of Reverse charge machainism from the date from which it was inroduced and the subsequent amendments. We have added all the services covered under Reverse Charge Mechainism till date. For ease of understanding, we have presented every service in the form of chart and diagrams.
- Reverse charge mechanism shifts the liability to pay service tax from the service provider to the service receiver. It applies in cases of services imported from outside India, services provided by individuals/firms to businesses, and certain other notified services.
- Under complete reverse charge, the service receiver assumes full responsibility for tax compliance including registration, tax payment, and return filing. Under partial reverse charge, liability is split between provider and receiver.
- The service receiver must register and comply with all tax obligations for services covered under reverse charge. Point of taxation rules vary for determining tax payment timing between provider and receiver. Demand notices can be issued to both parties in case of tax disputes.
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.
If you have any Query you can contact Us
Mail id:- ca.sanjiv.nanda@gmail.com
Youtube Channel :- https://www.youtube.com/channel/UCmmx2GFXeoF-DNtNjwnpYJA
Website :- http://www.sanjivnanda.com/
Facebook link :- https://www.facebook.com/ca.sanjivnanda919/
Twitter :- https://twitter.com/
Services under Reverse Charge in GST regimeGST India Law
GST Council has approved list of services that will be under reverse charge in the meeting held at Srinagar, Jammu & Kashmir on 19 May 2017. The information is being public immediately after the GST Council’s decision and it will be subject to further vetting during which the list may undergo some changes.
This document summarizes 13 services that are subject to reverse charge mechanism under GST. It details the service provider, recipient of service, and percentage of GST payable. Some key services include legal services provided by advocates to businesses, services provided between related parties like directors and companies, and transportation services where the supplier or recipient is located outside of India. The reverse charge applies at 100% rate for most services, with the recipient business responsible for paying the tax instead of the supplier.
The document summarizes key changes to India's service tax regime introduced in the 2012 budget, including expanding the scope of services covered, increasing the general rate to 12%, and introducing a reverse charge mechanism. Under the reverse charge mechanism, liability to pay service tax is shifted wholly or partially from service providers to service receivers for certain specified services. This places additional compliance burdens on service receivers. The changes aim to prepare taxpayers for the proposed Goods and Services Tax to be introduced in April 2013.
This slide contains GST RCM topic notes. These are simplied and short notes (Summary) on the topic. So student who are reading for the first time are adviced to go through books also
The presentation contains the history of Reverse charge machainism from the date from which it was inroduced and the subsequent amendments. We have added all the services covered under Reverse Charge Mechainism till date. For ease of understanding, we have presented every service in the form of chart and diagrams.
- Reverse charge mechanism shifts the liability to pay service tax from the service provider to the service receiver. It applies in cases of services imported from outside India, services provided by individuals/firms to businesses, and certain other notified services.
- Under complete reverse charge, the service receiver assumes full responsibility for tax compliance including registration, tax payment, and return filing. Under partial reverse charge, liability is split between provider and receiver.
- The service receiver must register and comply with all tax obligations for services covered under reverse charge. Point of taxation rules vary for determining tax payment timing between provider and receiver. Demand notices can be issued to both parties in case of tax disputes.
The document summarizes service tax law in India, including key provisions around liability and registration requirements. It outlines that generally the service provider is liable to pay service tax, but section 68(2) allows for reverse charge mechanisms where the service recipient is liable. It provides examples of services where reverse charge applies fully or partially, such as insurance, goods transport, and works contracts. The document also discusses related topics such as applicable tax rates, input tax credit eligibility, and invoice requirements.
The document discusses reverse charge and joint charge under service tax in India. It provides details on the legal provisions, history of reverse charge, relevant notifications, list of services covered under reverse charge mechanism, and accounting treatment. Key services covered in full or partial reverse charge include insurance auxiliary, sponsorship, transport of goods, legal services, and manpower supply. The document also discusses utilization of tax credits and point of taxation rules in relation to reverse charge.
Service tax is an indirect tax paid to the government for consuming taxable services provided by service providers. The tax is included in bills for services such as restaurants, travel, and cable providers. Service tax was introduced in 1994 at a rate of 5% and now stands at 15% including additional cess taxes. Service tax applies throughout India except Jammu and Kashmir. Certain services such as agriculture, betting, and transportation of passengers are excluded from service tax through a negative list. The point of taxation, or when the tax liability arises, is determined based on the invoice date, payment date, or completion of service date - whichever comes first.
This document contains contact details for K.Vaitheeswaran, an advocate and tax consultant based in Chennai and Bangalore, India. It then provides information on India's reverse charge mechanism under service tax law, including various notifications specifying the percentage of tax to be paid by the service provider and receiver for different services. It discusses provisions, exemptions, and case laws related to the reverse charge mechanism for goods transport agency services, sponsorship services, arbitral tribunal services, legal services, support services, renting of motor vehicles, supply of manpower, service portion of works contracts, and other international and director services.
The document discusses the rationale and concepts of reverse charge and partial charge mechanisms under service tax in India. It provides details on the key aspects like notified services, registration requirements, returns, point of taxation, place of provision of service rules, and CENVAT credit eligibility. The document elaborates on various notified services where either reverse charge or partial charge applies such as insurance and recovery agent services, GTA services, sponsorship, legal services, director services to companies, manpower supply, security services, and works contract services. It also provides examples and case studies to illustrate compliance requirements for different situations.
The key points are:
1. The Place of Provision of Service Rules, 2012 were introduced to determine where services are consumed for service tax purposes under India's negative list regime.
2. Unlike previous rules which focused on where services were performed or payments received, the new rules define consumption as the place of provision.
3. The rules outline 12 categories and specify the place of provision for different types of services such as performance-based, immovable property
1) The document discusses the topic of service tax in India. It provides details on the basic concept of service tax, its genesis in India, approaches to service taxation, and the meaning of key terms like "service" and "consideration".
2) It examines the negative list of services exempted from service tax under section 66D of the Finance Act, including services provided by the government, Reserve Bank of India, foreign diplomatic missions, and certain agriculture, trading, manufacturing, and transport-related services.
3) The effective rate of service tax in India is currently 12.36% as per section 66B of the Finance Act.
1. Service tax is levied under the Finance Act, 1994 on taxable services at the rate of 12% plus applicable cess, resulting in an effective tax rate of 12.36%.
2. The Place of Provision of Services Rules, 2012 determine whether a service is provided in the taxable territory of India and therefore subject to service tax. Generally, the location of the service recipient applies, unless specific exceptions for certain types of services.
3. The Point of Taxation Rules, 2011 determine the point in time at which a service is deemed provided and therefore the applicable tax rate. Generally this is the earlier of the invoice date or payment date, with exceptions for delayed invoices.
This document discusses India's place of provision rules for services for the purposes of determining service tax liability. It provides an overview of the key rules, including:
1. The general rule that the place of provision is the location of the service receiver.
2. Performance-based services are taxed where the services are physically performed.
3. Property-based services are taxed where the property is located.
4. Event-based services are taxed where the event takes place.
5. Specific categories like banking, telecom, and transport are taxed where the service provider is located.
It also addresses concepts like exports of services and determining place of provision for services provided across
IamSMEofIndia E circular- Service tax on reimbursementsIamSME
The document clarifies service tax rules on reimbursements in India. It discusses:
1. Service tax law has existed for over 10 years but recent clarification was needed due to confusion and court cases.
2. Reimbursements for expenses incurred while providing services are now compulsory subject to tax, with some exceptions.
3. For expenses to be exempt as a "pure agent", eight conditions must be satisfied including that the service provider acts only as an agent in procuring goods/services for the recipient.
4. The clarification aims to close loopholes where tax was avoided by splitting contracts into exempt reimbursements and taxable service fees.
This document discusses various aspects of service tax in India as it relates to employers and employees, director fees, the reverse charge mechanism, and manpower supply. Some key points include:
1. Services provided by an employer to an employee are taxable if there is consideration. Examples of taxable services are transportation or guesthouse services provided for a fee.
2. Director fees paid to individuals are taxable, while fees paid to entities appointing the director are taxed to the entity.
3. The reverse charge mechanism applies when non-corporate entities provide services to corporate entities. The corporate entity accounts for the tax on a reverse charge basis.
4. Legal and arbitral services provided to individuals
This document discusses key aspects of service tax in India such as definitions of taxable services, reverse charge mechanism, negative list of non-taxable services, point of taxation and due dates for payment. It provides details on categories of services taxable under reverse charge and joint charge. It also lists various services exempt from tax under the negative list and rules for determining point of taxation depending on when the invoice was issued and payment was received.
The document discusses several proposed changes to India's service tax provisions in the 2016 budget. Key changes include the introduction of a new 0.5% Krishi Kalyan Cess on all taxable services, changes to certain negative list entries to widen the service tax base, amendments to point of taxation and abatement rules, an increase in certain penalty limits, and exemptions for certain agriculture-related services and services provided to government entities.
The document discusses key provisions around place of supply under the Indian GST regime. It covers sections governing intra-state and inter-state supplies of goods and services, as well as import and export of goods and services. Specific provisions are outlined for determining the place of supply for various categories of goods and services, such as immovable property, performance-based services, transportation, and telecommunication. The overall intent is to clearly distinguish domestic from cross-border supplies and supplies to registered and unregistered persons.
Presentation on service tax Act 1994, for undergraduate commerce students of Goa University. Includes historical background, year wise tax collection e for last 20 years and procedural aspect of service tax Act 1994 with latest amendments are covered.
Reverse Charge Mechanism under Service Tax in the light of Notification no. 30/2012 ST,dated 20th June, 2012, Notification no. 45/2012 ST and 46/2012 ST, dated 7th August, 2012.
This document summarizes the rules for determining the place of provision of various services under GST. It outlines 14 rules for different types of services. The key rules are:
- For services provided on board conveyances like planes or trains, the place of provision is the first scheduled point of departure.
- For passenger transportation, the place of provision is where the journey commences.
- For goods transportation, the place of provision is the destination of the goods.
- For certain specified services like banking, intermediary services, and short-term vehicle rentals, the place of provision is the location of the service provider.
- If any part of a service is provided in a taxable
The document outlines new reverse charge mechanisms for certain taxable services in India. Under the new rules:
1) For certain specified services like insurance agency, transportation of goods, sponsorship, legal services, and services provided from outside India, the recipient of the service will now be liable to pay 100% of the service tax, instead of the service provider.
2) For other services like renting of vehicles, supply of manpower, and service portion of works contracts, the service tax will be split between the provider and recipient.
3) The point of taxation for reverse charge services will now be the date of payment by the recipient, or earlier dates in some cases involving associated enterprises.
4)
The document discusses the reverse charge mechanism in service tax in India, which shifts the liability to deposit service tax from the service provider to the service receiver for certain specified services. It provides details on the types of services that fall under complete and partial reverse charge, as well as the legal compliance requirements for service receivers under reverse charge. It also lists 11 services where the liability to pay service tax lies fully or partially with the service receiver rather than the service provider.
The document summarizes service tax law in India, including key provisions around liability and registration requirements. It outlines that generally the service provider is liable to pay service tax, but section 68(2) allows for reverse charge mechanisms where the service recipient is liable. It provides examples of services where reverse charge applies fully or partially, such as insurance, goods transport, and works contracts. The document also discusses related topics such as applicable tax rates, input tax credit eligibility, and invoice requirements.
The document discusses reverse charge and joint charge under service tax in India. It provides details on the legal provisions, history of reverse charge, relevant notifications, list of services covered under reverse charge mechanism, and accounting treatment. Key services covered in full or partial reverse charge include insurance auxiliary, sponsorship, transport of goods, legal services, and manpower supply. The document also discusses utilization of tax credits and point of taxation rules in relation to reverse charge.
Service tax is an indirect tax paid to the government for consuming taxable services provided by service providers. The tax is included in bills for services such as restaurants, travel, and cable providers. Service tax was introduced in 1994 at a rate of 5% and now stands at 15% including additional cess taxes. Service tax applies throughout India except Jammu and Kashmir. Certain services such as agriculture, betting, and transportation of passengers are excluded from service tax through a negative list. The point of taxation, or when the tax liability arises, is determined based on the invoice date, payment date, or completion of service date - whichever comes first.
This document contains contact details for K.Vaitheeswaran, an advocate and tax consultant based in Chennai and Bangalore, India. It then provides information on India's reverse charge mechanism under service tax law, including various notifications specifying the percentage of tax to be paid by the service provider and receiver for different services. It discusses provisions, exemptions, and case laws related to the reverse charge mechanism for goods transport agency services, sponsorship services, arbitral tribunal services, legal services, support services, renting of motor vehicles, supply of manpower, service portion of works contracts, and other international and director services.
The document discusses the rationale and concepts of reverse charge and partial charge mechanisms under service tax in India. It provides details on the key aspects like notified services, registration requirements, returns, point of taxation, place of provision of service rules, and CENVAT credit eligibility. The document elaborates on various notified services where either reverse charge or partial charge applies such as insurance and recovery agent services, GTA services, sponsorship, legal services, director services to companies, manpower supply, security services, and works contract services. It also provides examples and case studies to illustrate compliance requirements for different situations.
The key points are:
1. The Place of Provision of Service Rules, 2012 were introduced to determine where services are consumed for service tax purposes under India's negative list regime.
2. Unlike previous rules which focused on where services were performed or payments received, the new rules define consumption as the place of provision.
3. The rules outline 12 categories and specify the place of provision for different types of services such as performance-based, immovable property
1) The document discusses the topic of service tax in India. It provides details on the basic concept of service tax, its genesis in India, approaches to service taxation, and the meaning of key terms like "service" and "consideration".
2) It examines the negative list of services exempted from service tax under section 66D of the Finance Act, including services provided by the government, Reserve Bank of India, foreign diplomatic missions, and certain agriculture, trading, manufacturing, and transport-related services.
3) The effective rate of service tax in India is currently 12.36% as per section 66B of the Finance Act.
1. Service tax is levied under the Finance Act, 1994 on taxable services at the rate of 12% plus applicable cess, resulting in an effective tax rate of 12.36%.
2. The Place of Provision of Services Rules, 2012 determine whether a service is provided in the taxable territory of India and therefore subject to service tax. Generally, the location of the service recipient applies, unless specific exceptions for certain types of services.
3. The Point of Taxation Rules, 2011 determine the point in time at which a service is deemed provided and therefore the applicable tax rate. Generally this is the earlier of the invoice date or payment date, with exceptions for delayed invoices.
This document discusses India's place of provision rules for services for the purposes of determining service tax liability. It provides an overview of the key rules, including:
1. The general rule that the place of provision is the location of the service receiver.
2. Performance-based services are taxed where the services are physically performed.
3. Property-based services are taxed where the property is located.
4. Event-based services are taxed where the event takes place.
5. Specific categories like banking, telecom, and transport are taxed where the service provider is located.
It also addresses concepts like exports of services and determining place of provision for services provided across
IamSMEofIndia E circular- Service tax on reimbursementsIamSME
The document clarifies service tax rules on reimbursements in India. It discusses:
1. Service tax law has existed for over 10 years but recent clarification was needed due to confusion and court cases.
2. Reimbursements for expenses incurred while providing services are now compulsory subject to tax, with some exceptions.
3. For expenses to be exempt as a "pure agent", eight conditions must be satisfied including that the service provider acts only as an agent in procuring goods/services for the recipient.
4. The clarification aims to close loopholes where tax was avoided by splitting contracts into exempt reimbursements and taxable service fees.
This document discusses various aspects of service tax in India as it relates to employers and employees, director fees, the reverse charge mechanism, and manpower supply. Some key points include:
1. Services provided by an employer to an employee are taxable if there is consideration. Examples of taxable services are transportation or guesthouse services provided for a fee.
2. Director fees paid to individuals are taxable, while fees paid to entities appointing the director are taxed to the entity.
3. The reverse charge mechanism applies when non-corporate entities provide services to corporate entities. The corporate entity accounts for the tax on a reverse charge basis.
4. Legal and arbitral services provided to individuals
This document discusses key aspects of service tax in India such as definitions of taxable services, reverse charge mechanism, negative list of non-taxable services, point of taxation and due dates for payment. It provides details on categories of services taxable under reverse charge and joint charge. It also lists various services exempt from tax under the negative list and rules for determining point of taxation depending on when the invoice was issued and payment was received.
The document discusses several proposed changes to India's service tax provisions in the 2016 budget. Key changes include the introduction of a new 0.5% Krishi Kalyan Cess on all taxable services, changes to certain negative list entries to widen the service tax base, amendments to point of taxation and abatement rules, an increase in certain penalty limits, and exemptions for certain agriculture-related services and services provided to government entities.
The document discusses key provisions around place of supply under the Indian GST regime. It covers sections governing intra-state and inter-state supplies of goods and services, as well as import and export of goods and services. Specific provisions are outlined for determining the place of supply for various categories of goods and services, such as immovable property, performance-based services, transportation, and telecommunication. The overall intent is to clearly distinguish domestic from cross-border supplies and supplies to registered and unregistered persons.
Presentation on service tax Act 1994, for undergraduate commerce students of Goa University. Includes historical background, year wise tax collection e for last 20 years and procedural aspect of service tax Act 1994 with latest amendments are covered.
Reverse Charge Mechanism under Service Tax in the light of Notification no. 30/2012 ST,dated 20th June, 2012, Notification no. 45/2012 ST and 46/2012 ST, dated 7th August, 2012.
This document summarizes the rules for determining the place of provision of various services under GST. It outlines 14 rules for different types of services. The key rules are:
- For services provided on board conveyances like planes or trains, the place of provision is the first scheduled point of departure.
- For passenger transportation, the place of provision is where the journey commences.
- For goods transportation, the place of provision is the destination of the goods.
- For certain specified services like banking, intermediary services, and short-term vehicle rentals, the place of provision is the location of the service provider.
- If any part of a service is provided in a taxable
The document outlines new reverse charge mechanisms for certain taxable services in India. Under the new rules:
1) For certain specified services like insurance agency, transportation of goods, sponsorship, legal services, and services provided from outside India, the recipient of the service will now be liable to pay 100% of the service tax, instead of the service provider.
2) For other services like renting of vehicles, supply of manpower, and service portion of works contracts, the service tax will be split between the provider and recipient.
3) The point of taxation for reverse charge services will now be the date of payment by the recipient, or earlier dates in some cases involving associated enterprises.
4)
The document discusses the reverse charge mechanism in service tax in India, which shifts the liability to deposit service tax from the service provider to the service receiver for certain specified services. It provides details on the types of services that fall under complete and partial reverse charge, as well as the legal compliance requirements for service receivers under reverse charge. It also lists 11 services where the liability to pay service tax lies fully or partially with the service receiver rather than the service provider.
Reverse Charge Mechanism Under Service Tax Laws Syed Irshad Ali
The document discusses various aspects of the reverse charge mechanism under service tax in India. It defines reverse charge mechanism and explains when it came into effect. It lists 12 services to which reverse charge applies and whether it is full or partial reverse charge. It addresses issues around point of taxation, CENVAT credit, valuation, exemptions and compliance requirements. It provides an example of the accounting treatment and invoice format under reverse charge mechanism.
Service tax on legal services under reverse charge mechanism by anand bishtAnand Bisht
This document discusses service tax on legal services under the reverse charge mechanism in India. It explains that under the reverse charge mechanism, the recipient of the service is responsible for paying the service tax instead of the service provider. For legal services provided to business entities with an annual turnover over 10 lakhs, the business entity must pay the service tax under the reverse charge. The document provides examples of common legal services and outlines due dates for payment and filing of service tax returns under the reverse charge mechanism.
The document discusses HR initiatives at Neusource to build a great team. It emphasizes developing individual skills and working towards common goals. Each member of the team should understand their role and contribute their capabilities fully. Training programs are designed to develop the required skills to help each employee reach their potential and become a star player. The weak links in the chain will be left behind.
The document discusses HR initiatives at Neusource to build a great team. It emphasizes developing individual skills and working towards common goals. Each member should understand their role and contribute their capabilities fully. Training programs are designed to develop the required skills to help each employee excel. The document encourages all employees to develop their potential and strengthen the organization.
Service tax was introduced in India in 1994 and is a tax levied on the transaction of certain specified services. Initially only three services were taxable, but over time the scope has expanded significantly. Services now constitute over 60% of India's GDP. The rate of service tax has increased over time from 10% to the current 12% plus applicable cess. A key change in 2012 was the introduction of a "negative list" approach where all services are taxable unless specifically exempted, as opposed to the previous inclusive approach. Certain services are covered under "reverse charge" where the liability to pay the tax is on the service recipient rather than provider.
The document clarifies service tax rules on reimbursements in India. It discusses:
1. Service tax law has existed for over 10 years but recent changes were made to clarify confusion from court cases.
2. Reimbursements for expenses incurred while providing services are now compulsory subject to service tax, with some exceptions.
3. For expenses to be exempt as a "pure agent", eight conditions must be satisfied including that the service provider acts only as an agent in procuring goods/services for the recipient.
The document summarizes key aspects of reverse charge provisions and abatements under service tax in India per recent notifications. It discusses services where the liability to pay tax shifts fully or partially to the service recipient under reverse charge. It also outlines various taxable services and the abatement percentage allowed, such as 40% for transport of passengers by air and 70% for supply of food. Conditions for availing abatements include not claiming CENVAT credit on inputs by the service provider.
The document discusses the reverse charge mechanism under GST. It provides an introduction to reverse charge and explains that in some cases, the liability to pay tax shifts from the supplier to the recipient of goods or services. It lists various goods and services that are subject to reverse charge as specified by the government. It also discusses key aspects of reverse charge like applicable recipients and suppliers, time of supply, and implications for composition scheme registrants.
The document summarizes key information about service tax in India, including:
- Service tax was introduced in 1994 on three services: stockbroker brokerage, telephone services, and general insurance premiums.
- It is now applicable to over 100 taxable services and is levied by the central government under the Finance Act of 1994.
- The provider of a taxable service is generally responsible for paying the service tax, though in some cases the recipient is responsible under "reverse charge" rules.
- Registration is required if the aggregate value of taxable services provided exceeds Rs. 9 lacs annually.
1. The document discusses service tax and CENVAT credit rules in India, including who is eligible for credit, on what goods and services credit can be claimed, and accounting treatment.
2. There are three options for claiming credit for taxable and exempted activities, including full credit with record keeping, composite schemes based on output or input, and proportionate credit.
3. Issues addressed include credit eligibility for service recipients, internal allocation of duties, and tax treatment of exports and SEZ units.
This document discusses the applicability of service tax to legal services provided by law firms in India. It notes that while individual lawyers are exempt, law firms structured as partnerships or limited liability partnerships must pay a 10% service tax on fees charged to corporate clients. Exemptions apply to legal services like drafting documents or representing clients in court. The service tax aims to generate an estimated 50 crore rupees in annual revenue for the government. Both advantages and disadvantages exist from imposing this new tax on the legal industry.
This document provides an overview of changes to India's service tax regulations introduced by the Finance Act of 2012. Some key points:
- The taxation approach shifted from selective to comprehensive, bringing more services into the tax net.
- A negative list was introduced, such that any service not explicitly listed as exempt would be taxable. Certain services were also explicitly declared as taxable.
- New rules were introduced to determine the place of provision of a service, based on factors like the location of the service receiver or provider.
- Amendments were made to the point of taxation rules to align with the new regulatory framework and ensure tax is collected based on accrual rather than receipt of payment.
1) Service tax is a tax on services rendered that is paid by the person providing the service. It was first introduced in 1994 and the scope of taxable services has expanded each year.
2) Service tax is calculated as a percentage of the gross amount charged for a service, excluding material costs. It is also due on reimbursements that are part of the service. Service tax is paid when payment is received from the customer.
3) In Tally.ERP 9, service tax features must be enabled through configurations. The software then allows users to record service tax transactions, generate reports, and calculate tax payable and input credits.
Service tax is an indirect tax levied on the provision of certain specified services. [1] The provider of taxable services is generally responsible for paying the service tax to the government. [2] Small service providers whose annual taxable services are below Rs. 10 lakhs are exempt from service tax. [3] The current general rate of service tax in India is 10.3% of the gross amount charged for taxable services.
The document discusses India's Reverse Charge Mechanism for service tax. Key points:
- Under reverse charge, the service receiver is liable to pay service tax instead of the service provider for certain specified services. This was introduced in 2012 to improve tax compliance.
- Reverse charge applies to several services like legal, insurance, and transportation services. For these services, 100% of the tax is payable by the service receiver.
- The document provides details on tax rates and calculations for different services under reverse charge. It also discusses abatements or exemptions available for some services.
- Determining the taxable value of works contracts involves separating the goods and services portion of the contract and applying the appropriate
Consequences of Non Compliance Under GSTMitesh Katira
This document examines some of the monetary penalties,late fees & prosecution under the Central Goods & Service Tax Act,2017
The effective implementation of any tax law requires strict action against tax offenders. It is important for businesses to understand various compliances and implications for non-comply with various rules under GST. To encourage compliance with India's new GST tax regime, the government has come up with a three-pronged approach: Interest, Monetary Penalties, and Prosecution.
VAT Implementation in Kingdom of Saudi Arabia ( KSA)Mitesh Katira
VAT is on the way of implementation in the KSA from 1st of Jan 2018. It is critical for the companies to understand the nuances of the same and work on a roadmap to implement VAT so as to optimize the impact not only on profitability, working capital, pricing but also ERP, team sensitization and vendor education.
Here is a simple graphical guide for understanding the KSA VAT.
VAT is on the way of implementation in the UAE from 1st of Jan 2018. It is critical for the companies to understand the nuances of the same and work on a roadmap to implement VAT so as to optimize the impact not only on profitability, working capital, pricing but also ERP, team sensitization and vendor education.
Here is a simple graphical guide for understanding the UAE VAT.
The skills and competence of forensic service providers play a crucial role in resolving disputes.Investigations and analysis relating to fraudulent and or corrupt activities; Procurement Fraud and Theft.
The document provides an overview of the Goods and Services Tax (GST) in India. It discusses the existing indirect tax structure, the taxes that will be subsumed under GST, key features of GST including benefits, tax rates, and timelines for implementation. Important concepts under GST like supply, consideration, location of supplier and receiver, and time and place of supply are also summarized.
Importance of IT is going up. Mobile and Internet are completely disrupting the business landscape.
CA practices are at a stage where if they adopt this fast creeping change can fast track themselves many time or may perish if unable to adopt!!
This talks about dimensions, benefits and tips to adapt to the same.
This is prepared for a session at J.B. Nagar, Andheri Study Circle session of WIRC (ICAI)
APD provides cutting edge services to the Banks including the nationalized and cooperative Banks. It specializes in Bank Audit as one of the arms of auditing practice.
Audit Services Include Statutory Audits, Concurrent Audits, KYC Audits, Revenue Audits and Stock Audits.
Outsourcing includes TDS Returns Filing, TDS notices Handling, TDS related representations with the IT department, TDS appeals with ITAT, etc.
South Dakota State University degree offer diploma Transcriptynfqplhm
办理美国SDSU毕业证书制作南达科他州立大学假文凭定制Q微168899991做SDSU留信网教留服认证海牙认证改SDSU成绩单GPA做SDSU假学位证假文凭高仿毕业证GRE代考如何申请南达科他州立大学South Dakota State University degree offer diploma Transcript
An accounting information system (AIS) refers to tools and systems designed for the collection and display of accounting information so accountants and executives can make informed decisions.
Fabular Frames and the Four Ratio ProblemMajid Iqbal
Digital, interactive art showing the struggle of a society in providing for its present population while also saving planetary resources for future generations. Spread across several frames, the art is actually the rendering of real and speculative data. The stereographic projections change shape in response to prompts and provocations. Visitors interact with the model through speculative statements about how to increase savings across communities, regions, ecosystems and environments. Their fabulations combined with random noise, i.e. factors beyond control, have a dramatic effect on the societal transition. Things get better. Things get worse. The aim is to give visitors a new grasp and feel of the ongoing struggles in democracies around the world.
Stunning art in the small multiples format brings out the spatiotemporal nature of societal transitions, against backdrop issues such as energy, housing, waste, farmland and forest. In each frame we see hopeful and frightful interplays between spending and saving. Problems emerge when one of the two parts of the existential anaglyph rapidly shrinks like Arctic ice, as factors cross thresholds. Ecological wealth and intergenerational equity areFour at stake. Not enough spending could mean economic stress, social unrest and political conflict. Not enough saving and there will be climate breakdown and ‘bankruptcy’. So where does speculative design start and the gambling and betting end? Behind each fabular frame is a four ratio problem. Each ratio reflects the level of sacrifice and self-restraint a society is willing to accept, against promises of prosperity and freedom. Some values seem to stabilise a frame while others cause collapse. Get the ratios right and we can have it all. Get them wrong and things get more desperate.
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck mari...Donc Test
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck maria r mitchell.docx
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck maria r mitchell.docx
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck maria r mitchell.docx
In a tight labour market, job-seekers gain bargaining power and leverage it into greater job quality—at least, that’s the conventional wisdom.
Michael, LMIC Economist, presented findings that reveal a weakened relationship between labour market tightness and job quality indicators following the pandemic. Labour market tightness coincided with growth in real wages for only a portion of workers: those in low-wage jobs requiring little education. Several factors—including labour market composition, worker and employer behaviour, and labour market practices—have contributed to the absence of worker benefits. These will be investigated further in future work.
OJP data from firms like Vicinity Jobs have emerged as a complement to traditional sources of labour demand data, such as the Job Vacancy and Wages Survey (JVWS). Ibrahim Abuallail, PhD Candidate, University of Ottawa, presented research relating to bias in OJPs and a proposed approach to effectively adjust OJP data to complement existing official data (such as from the JVWS) and improve the measurement of labour demand.
Confirmation of Payee (CoP) is a vital security measure adopted by financial institutions and payment service providers. Its core purpose is to confirm that the recipient’s name matches the information provided by the sender during a banking transaction, ensuring that funds are transferred to the correct payment account.
Confirmation of Payee was built to tackle the increasing numbers of APP Fraud and in the landscape of UK banking, the spectre of APP fraud looms large. In 2022, over £1.2 billion was stolen by fraudsters through authorised and unauthorised fraud, equivalent to more than £2,300 every minute. This statistic emphasises the urgent need for robust security measures like CoP. While over £1.2 billion was stolen through fraud in 2022, there was an eight per cent reduction compared to 2021 which highlights the positive outcomes obtained from the implementation of Confirmation of Payee. The number of fraud cases across the UK also decreased by four per cent to nearly three million cases during the same period; latest statistics from UK Finance.
In essence, Confirmation of Payee plays a pivotal role in digital banking, guaranteeing the flawless execution of banking transactions. It stands as a guardian against fraud and misallocation, demonstrating the commitment of financial institutions to safeguard their clients’ assets. The next time you engage in a banking transaction, remember the invaluable role of CoP in ensuring the security of your financial interests.
For more details, you can visit https://technoxander.com.
The Impact of Generative AI and 4th Industrial RevolutionPaolo Maresca
This infographic explores the transformative power of Generative AI, a key driver of the 4th Industrial Revolution. Discover how Generative AI is revolutionizing industries, accelerating innovation, and shaping the future of work.
Dr. Alyce Su Cover Story - China's Investment Leadermsthrill
In World Expo 2010 Shanghai – the most visited Expo in the World History
https://www.britannica.com/event/Expo-Shanghai-2010
China’s official organizer of the Expo, CCPIT (China Council for the Promotion of International Trade https://en.ccpit.org/) has chosen Dr. Alyce Su as the Cover Person with Cover Story, in the Expo’s official magazine distributed throughout the Expo, showcasing China’s New Generation of Leaders to the World.
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%
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