Suhas (CS) 07 February 2014
We are providing software and internet site development work (mainly online education) to our overseas customers. The payment is received in foreign currency but majority work is done in development centers in India.
Are we liable to pay any service tax under reverse charge mechanism?
Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 ) 07 February 2014
Reverse charge under service tax:-
Under this scheme, service tax is payable by service receipient instead of service provider. Under this charge service receiver has to regiser himself under service tax. Further service receiver can not claim general exemption limit of 10 lack rupees. So he has to pay even on few rupees of service received. As per notification 30/2012 service tax, Reverse charge is applicable from 1st July 2012.
CA Archana Yadav (FCA) 13 February 2014
Dear Suhas,
Plain reading says you are not liable to service tax under reverse charge. Please elaborate the details to explain it further else contact me on 022-28920030
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