Reverse Charge, Service Tax

[sunil jain]

vide Not No 30/2012, service tax is required to be paid on reverse charge basis by recipient of services on certain services. One of such service is service by advocate if recipient is a business entity. As per section 65B(17), Business Entity means "any person ordinarily carrying out any activity relating to industry, commerce or any other business or profession"  

The query is whether a co-operative Thrift & Credit society carrying on financing activities for its members only, can be termed as business entity.

 Thanks,

 CA. R.K. Aggarwal  

Posts / Replies

[PAWAN KUMAR]

Yes the same would be termed as business entity because  the definition itself clealy stipultes "any other business " which covers the credit society carrying on financing business for its memeber, Therefore would be liable for service tax under reverse charge.