In this regards two
notifications have been issued providing the list of goods and services,
wherein the purchaser/recipient has the liability to pay GST.
Services covered under reverse
charge:
In
following cases 100 % of Tax will be paid by service receiver under Reverse
Charge Mechanism;
A.
Taxable services
provided by any person located in non-taxable territory.
Services should be received by any person located in taxable
territory
Taxable territory under GST - Whole of India except Jammu
& Kashmir.
B.
GTA Services
Services provided by GTA in respect of transport of goods by
road.
Person who pays the freight shall be treated as receiver of
service.
Service receiver should be the following persons:
Any
factory, Any society, Any co-operative society, Any dealer of excisable goods,
who is registered under the Central Excise Act, 1944, Any Body-corporate, Any
partnership firm including association of persons & Any Taxable Person
under GST.
C.
Legal service by Advocates:
Services
provided by individual advocate or a firm of advocates including senior
advocate.
Service
receiver should be a business entity in taxable territory.
Exemption:
A) Service provided to another advocate or firm of advocates B) non business
entity C) business entity having turnover of less than ₹ 20 lacs in previous
year exempted.
D.
Services provided by an arbitral
tribunal.
Service
receiver should be a business entity in taxable territory.
Exemption:
A) Services of Arbitral Tribunal to non-business entity are exempted. B) Services
of Arbitral Tribunal to business entities having turnover less than ₹ 20 lacs
in previous year are exempted.
E.
Sponsorship Services
Services
provided by way of sponsorship by any person.
Service
receiver should be any body corporate or partnership firm in taxable territory.
F.
Services by govt. or local
authorities
Services
provided by Government or local authority excluding,-
Renting
of immovable property, Services of Post office, transportation of
passengers/goods and services in relation to air craft or vessel inside or
outside the precincts of a port or an airport.
Service
receiver should be a business entity located in taxable territory.
G.
Director’s services
Services
provided by a director.
Service
receiver -Company or body corporate
H.
Services by An Insurance Agent
Service
receiver is any person carrying on insurance business.
I.
Services provided by a Recovery
Agent.
Service
receiver is Banking Company or Financial Institution or a non-banking financial
company.
J.
Enjoyment of Copy Rights
Services
provided by Author or music composer, photographer, artist, etc. by way of
transfer or permitting the use or enjoyment of a copyright relating to original
literary, dramatic, musical or artistic works.
Service
Receiver should be publisher, Music Company, producer.
The Government specified the above
mentioned supply of services which shall be paid on reverse charge basis i.e.
tax shall be paid by the recipient of such goods or services.
Goods
covered under reverse charge :
Following goods
will be covered under reverse charge
A)
supplied by Agriculturist
to Any registered person;
- Cashew
nuts, not shelled or peeled
- Bidi
wrapper leaves (tendu)
- Tobacco leaves
B)
Supply of Silk Yarn by Agriculturist
to Any registered person
C)
Supply of lottery from State Government, Union Territory or
any local authority to Lottery distributor or selling agent.
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