- This is glimpse of the Reverse Charge Mechanism (R.C.M.) [as amended from time to time] applicable from 01.04.2015.The following table shows such taxable services in which the extent of service tax payable thereon by the person who provides the service and the person who receives the service.
- Effective rates of R.C.M. as applicable are stated considering the increased service tax rate from 12.36% to 14% w.e.f. 01/06/2015.
R.C.M. TABLE WITH EFFECTIVE RATE for F.Y. 2015-16
Sl.No
|
Description of a service
|
Service Tax payable by Service Provider (%)
|
Service Tax payable by Service Reciver (%)
|
Effective Rate of service tax payable by Service Provider
|
Effective Rate of service tax payable by Service Reciver
| ||
1st April 2015 TO 31st May 2015
|
From 1st June 2015
|
1st April 2015 TO 31st May 2015
|
From 1st June 2015
| ||||
1
|
In respect of services provided or agreed to be provided by an insurance agent to any person carrying on insurance business
|
Nil
|
100%
|
0.00%
|
12.36%
|
0.00%
|
14.00%
|
1A
|
In respect of services provided or agreed to be provided by a recovery agent to a banking company or aFINANCIAL
 institution or a non-banking financial company |
Nil
|
100%
|
0.00%
|
12.36%
|
0.00%
|
14.00%
|
1B
|
In respect of services provided or agreed to be provided by a mutualFUND
agent or distributor, to a mutual fund or asset management company |
Nil
|
100%
|
0.00%
|
12.36%
|
0.00%
|
14.00%
|
1C
|
In respect of service provided or agreed to be provided by a selling or marketing agent ofLOTTERY TICKETS
to a lottery distributor or selling agent |
Nil
|
100%
|
0.00%
|
12.36%
|
0.00%
|
14.00%
|
2
|
In respect of services provided or agreed to be provided by a goods transport agency in respect of transportation of goods by road to
|
Nil
|
100%
|
0.00%
|
3.71%
|
0.00%
|
4.20%
|
Factory under the Factories Act,1948,
| |||||||
Society under the Societies Registration Act,1860,
| |||||||
Co-operative society,
| |||||||
Dealer of excisable goods under th Central Excise Act, 1944,
| |||||||
Any body corporate,
| |||||||
Partnership firm including association of persons.
| |||||||
3
|
In respect of services provided or agreed to be provided by way of sponsorship to any body corporate or partnership firm located in the taxable territory
|
Nil
|
100%
|
0.00%
|
12.36%
|
0.00%
|
14.00%
|
4
|
In respect of services provided or agreed to be provided by an arbitral tribunal
|
Nil
|
100%
|
0.00%
|
12.36%
|
0.00%
|
14.00%
|
5
|
In respect of services provided or agreed to be provided by individual advocate or a firm of advocates by way of legal services
|
Nil
|
100%
|
0.00%
|
12.36%
|
0.00%
|
14.00%
|
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%
|
0.00%
|
12.36%
|
0.00%
|
14.00%
|
*6
|
In respect of services provided or agreed to be provided by Government or local authority ‘by way of support services’ excluding,- (1) renting of immovable property, and (2) services specified in sub-clauses
|
Nil
|
100%
|
0.00%
|
12.36%
|
0.00%
|
14.00%
|
(i) services by the Department of Posts by way of speed post, express parcel post, life insurance, and agency services provided to a person other than Government
| |||||||
(ii) services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport
| |||||||
(iii) transport of goods or passenger of clause (a) of section 66D of theFINANCE
Act,1994 | |||||||
7
|
(a) in respect of services provided or agreed to be provided by way of renting of a motor vehicle (by individual,HUF or partnership firm to body corporate) designed to carry passengers on abated value to any person who is not engaged in the similar line of business
|
Nil
|
100%
|
0.00%
|
4.944%
|
0.00%
|
5.60%
|
(b) in respect of services provided or agreed to be provided by way of renting of a motor vehicle (by individual, HUF or partnership firm to body corporate) designed to carry passengers on non abated value to any person who is not engaged in the similar line of business
|
50%
|
50%
|
6.18%
|
6.18%
|
7.00%
|
7.00%
| |
8
|
In respect of services provided or agreed to be provided by way of supply of manpower for any purpose or security services (by individual,HUF or partnership firm to body corporate)
|
Nil
|
100%
|
0.00%
|
12.36%
|
0.00%
|
14.00%
|
9
|
In respect of services provided or agreed to be provided in service portion in execution of works contract (by individual,HUF or partnership firm to body corporate)
|
50%
|
50%
| ||||
original works
|
2.47%
|
2.47%
|
2.80%
|
2.80%
| |||
maintenance or repair or reconditioning or restoration or servicing
|
4.326%
|
4.326%
|
4.90%
|
4.90%
| |||
10*
|
In respect of any taxable services provided or agreed to be provided by any person who is located in a nontaxable territory and received by any person located in the taxable territory
|
Nil
|
100%
|
0.00%
|
12.36%
|
0.00%
|
14%
|
11
|
In respect of any service provided or agreed to be provided by a person involving an aggregator in any manner
|
Nil
|
100%
|
0.00%
|
12.36%
|
0.00%
|
14.00%
|
* In Sl No. 6 & 10 indicates that the rates are subject to the type of service provided.
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