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TMI BlogMiscellaneousX X X X Extracts X X X X X X X X Extracts X X X X ..... al Government may notify the service and the extent of service tax which shall be payable by such person and the provisions of Chapter V 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. Under this clause the Central government has issued notification no. 30/ 2012 dated 20.6.2012 notifying the description of specified services when provided in the manner so specified where part of the service tax has to be paid by the service receiver. The extent to which tax liability has to be discharged by the service receiver has also been specified in the said notification. The manner of operation of the reverse charge mechanism has been explained in this point. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provided; and the service tax payable thereon. As per clause (iv) of sub-rule (1) of the said rule 4A the service tax payable thereon' has to be indicated. The service tax payable would include service tax payable by the service provider. 10.1.3 If the service provider is exempted being a SSI (turnover less than Rs 10 lakhs), how will the reverse charge mechanism work? The liability of the service provider and service recipient are different and independent of each other. Thus in case the service provider is availing exemption owing to turnover being less than Rs 10 lakhs, he shall not be obliged to pay any tax. However, the service recipient shall have to pay service tax which he is required to pay under the partial reverse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ugust 2012. The service provider would be required to pay tax (to the extent liability is affixed on him) by 5th/6th August, 2012 or 5th/6th October 2012 depending upon the admissibility of benefit under the proviso to Rule 6 of the Service Tax Rules 1994 . The service recipient would need to pay tax (to the extent liability is affixed on him) by 5th/6th September 2012. 10.1.6 How is the service recipient required to calculate his tax liability under partial reverse charge mechanism? How will the service recipient know which abatement or valuation option has been exercised by the service provider? The service recipient would need to discharge liability only on the payments made by him. Thus the assessable value would be calculate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to a service receiver is located outside India the service is not a service specified in the negative list the place of provision of the service is outside India the payment for such service is received by the service provider in convertible foreign exchange the service provider and service receiver are not merely establishments of a distinct person by virtue of item ( b ) of Explanation 2 of clause 44 of section 65B of the Act The answer to all questions above must be yes to avail the status of export of service. 10.2.2 Can there be an export between an establishment of a person in taxable territory and another establishment of same person in a non-taxable territory? No. Even though such per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nner as determined under rule 5 and shall be determined for the month previous to the month during which the CENVAT credit is distributed. In case if any of its unit pays tax or duty on quarterly basis as provided in rule 6 of Service Tax Rules, 1994 or rule 8 of Central Excise Rules, 2002 then the relevant period shall be the quarter previous to the quarter during which the CENVAT credit is distributed. The turnover so calculated would be ex-duty i.e not inclusive of the taxes and duties on the goods and services supplied. e.g. a company manufactures fans in 2 units and other appliances in 2 other units. Advertisement services for fans would qualify as an input service for the units manufacturing fans and hence could be distribu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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