Reverse and Partial Reverse Mechanism Chart

Reverse and Partial Reverse Mechanism Chart with effect from 01.04.2015 and The extent of service tax payable thereon by the person who provides the service and any other person liable for paying service tax for the taxable services

Table
				Percentage of		Percentage of service
				service tax		tax payable by any
Sl.		Description of a service		payable by the		person liable for
No.				person		paying service tax
				providing		other than the
				service		service provider
(1)		(2)		(3)		(4)
		In respect of services provided or agreed to be
1		provided by an insurance agent to any person		Nil		100%
		carrying on insurance business
		In respect of services provided or agreed to be
		provided by a recovery agent to a banking
1A		company or a financial institution or a non-		Nil		100%
		banking financial company (Effective from
		01.04.2015)
		In respect of services provided or agreed to be
1B.		provided by a mutual fund agent or distributor,		Nil		100%
		to a mutual fund or asset management company
		(Effective from 01.04.2015)
		In respect of service provided or agreed to be
1C.		provided by a selling or marketing agent of		Nil		100%
		lottery tickets to a lottery distributor or selling
		agent
		In respect of services provided or agreed to be
		provided by a goods transport agency in respect
		of transportation of goods by road to Company,
2		Partnership Firm, Registered Factory,		Nil		100%
		Registered Society, co-operative society, AOP,
		LLP, Person Registered Under Central Excise
		Act, 1944 including Excise Dealers
		In respect of services provided or agreed to be
3		provided by way of sponsorship to anybody		Nil		100%
		corporate or partnership firm

4		In respect of services provided or agreed to be		Nil		100%
		provided by an arbitral tribunal to any Business
		entity
		In respect of services provided or agreed to be
5		provided by individual advocate or a firm of		Nil		100%
		advocates by way of legal services to any
		Business entity
		In respect of services provided or agreed to be
5A		provided by a director of a company or a body		Nil		100%
		corporate to the said company or the body
		corporate
		In respect of services provided or agreed to be
		provided by Government or local authority
6		excluding,- (1) renting of immovable property,		Nil		100%
		and (2) services specified in sub-clauses (i), (ii)
		and (iii) of clause (a) of section 66D of the
		Finance Act,1994 to any Business Entity
		(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		Nil		100%
		value to any person who is not engaged in the
		similar line of business by individual, HUF,
		firm or AOP to Body Corporate
7
		(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		50%		50%
		in the similar line of business by individual,
		HUF, firm or AOP to Body Corporate (Revised
		wef 01.10.2014)
		in respect of services provided or agreed to be
8.		provided by way of supply of manpower for		Nil		100%
		any purpose or security services by individual,
		HUF, firm or AOP to Body Corporate
		in respect of services provided or agreed to be
9.		provided in service portion in execution of		50%		50%
		works contract by individual, HUF, firm or
		AOP to Body Corporate
		in respect of any taxable services provided or
10		agreed to be provided by any person who is		Nil		100%
		located in a non-taxable territory and received
		by any person located in the taxable territory

		in respect of any service provided or agreed to
11.		be provided by a person involving an		Nil		100%
		aggregator in any manner to any Business
		Entity(Effective from 01.03.2015)

Explanation-I. – The person who pays or is liable to pay freight for the transportation of goods by road in goods carriage, located in the taxable territory shall be treated as the person who receives the service for the purpose of this notification.

Explanation-II. – In works contract services, where both service provider and service recipient is the persons liable to pay tax, the service recipient has the option of choosing the valuation method as per choice, independent of valuation method adopted by the provider of service.

Explanation-III. Hitherto, support services provided by a Government/Local authority to any business entity was subject to 100% reverse charge. The scope of reverse charge has now been extended in case of all services provided by the Government/Local authority to such business entities. The exclusion from reverse charge on renting of immovable property and some specified services of Sec. 66D of the Act shall continue.