Sl.No. Description of a service Percentage of  ST payable by Service Provider Percentage of ST payable by Service Receiver Eligible Service Reciever
1 services provided or agreed to be provided by an insurance agent to any person carrying on insurance business   Nil 100% Any one carrying Insurance Business
2 services  provided or agreed to be provided  by a goods transport agency in respect of transportation  of goods by road Nil 100% Company, Firm, Factory, Society, Excise registered assessee
3 services  provided or agreed to be provided  by way of sponsorship Nil 100% Company and Firm
4 services  provided or agreed to be provided  by an arbitral tribunal Nil 100% Any Business entity
5 services  provided or agreed to be provided  by individual advocate Nil 100% Any Business entity
6 services  provided or agreed to be provided  by way of support service by Government or local authority Nil 100% Any Business entity
7 (a)   in respect of  services  provided or agreed to be provided  by way of renting or hiring any motor vehicle designed to carry passenger on abated value. Nil 100% Company
  (b)   in respect of  services  provided or agreed to be provided  by way of renting or hiring any motor vehicle designed to carry passenger on non abated value. 60% 40%  
8 services  provided or agreed to be provided  by way of supply of manpower or Security services(inserted in notification 45-46 dated 07/08/2012)  for any purpose 25% 75% Company
9 services  provided or agreed to be provided  by way of works contract 50% 50% Company
10 any taxable services  provided or agreed to be provided  by any person who is located in a non-taxable territory and received by any person located in the taxable territory(IMPORT OF SERVICES) Nil 100% Any Person
11 provided or agreed to be provided by a directorof a company to the said company Nil 100% Company

Important Points in Reverse Charge Mechanism

1

Credit of tax paid can be availed by service recipient if it is input service for him

2

The credit of tax paid by the service recipient under partial reverse charge would be available on the basis on the tax payment challan (but invoice required)

3

Service provider under Reverse Charge Mechanism may claim refund of tax paid under rule 5(b) of CCR, 2004  

4

Service Tax under reverse charge to be paid within 6 months on actual payment (Rule 7 of POT Rules, 2011) 

5

Small scale benefit is available only to service provider (not to service receiver), if entitled

6

Service receiver under reverse charge cannot avail exemption of Rs. 10 lakh under Notification No. 33/2012-ST dated 20.06.2012 

7

Service Tax under reverse charge has to be paid only by cash vide GAR Challan No. 7 and it cannot be paid by way of utilization of Cenvat Credit.

8

Once paid, Cenvat credit can be taken for paying eligible input service

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