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REVERSE CHARGE MECHANISM CHART IN SERVICE TAX – FY 2016-2017 AY 2017-2018

REVERSE CHARGE MECHANISH CHART IN SERVICE TAX – FY 2016-2017 AY 2017-2018

Effective rates of Service tax to be payable by Service Receiver (“SR”) under full Reverse Charge and by Service Provider (“SP”) & SR under the Partial/ Joint Reverse Charge, w.e.f June 1, 2016 after imposition of Kalyan Krishi Cess.

 

Sl. No Description of a service Rate of ST payable by the SP & SR: 01.06.2015 to 14.11.2015(%) Effective rate of ST payable by the SP & SR: 15.11.2015 (after Introduction of SB Cess @ 0.5%) to 31.05.2016(%) Effective rate of ST payable by the SP & SR: 01.06.2016 (after Introduction of KKC @ 0.5%)(%)
1 Services provided or agreed to be provided by an insurance agent to any person carrying on insurance business SP: NilSR: 14 (100%) SP: NilSR: 14.5 SP: NilSR: 15
1A Services provided or agreed to be provided by a recovery agent to a banking company or a financial institution or a non-banking financial company SP: NilSR: 14 (100%) SP: NilSR: 14.5 SP: NilSR: 15
1B Services provided or agreed to be provided by a mutual fund agent or distributor, to a mutual fund or asset management company SP: NilSR: 14 (100%) Omitted vide NN 18/2016-ST dated 01.03.2016 (w.e.f 01.04.2016From 15.11.2015 to 31.03.2016:

SP: Nil

SR: 14.5 (100%)

NA
1C Services provided or agreed to be provided by a selling or marketing agent of lottery tickets to a lottery distributor or selling agent of the State Government SP: NilSR: 14 (100%) SP: NilSR: 14.5 SP: NilSR: 15
2 Services of goods transport agency in relation to transportation of goods other than used household goods. After availment of 70% abatement:SP: Nil

SR: 30% of 14% = 4.2 (i.e. 100%)

After availment of 70% abatement:SP: Nil

SR: 4.35 (i.e. 14.5%*30%)

After availment of 70% abatement:
SP:
Nil
SR:
4.5 (i.e. 15%*30%)
3 Services provided or agreed to be provided by way of sponsorship to any body corporate or partnership firm located in the taxable territory SP: NilSR: 14 (100%) SP: NilSR: 14.5 SP: NilSR: 15
4 Services provided or agreed to be provided by an arbitral tribunal SP: NilSR: 14 (100%) SP: NilSR: 14.5 SP: NilSR: 15
5 Entry amended vide NN 18/2016-ST dated 01.03.2016, w.e.f 01.04.2016 to bring legal services provided by a senior advocate under forward charge
Prior to 01.04.2016: Services provided or agreed to be provided by individual advocate or a firm of advocates by way of legal services SP: NilSR: 14 (100%) SP: NilSR: 14.5 SP: NilSR: 15
Post 01.04.2016: Services provided or agreed to be provided by a firm of advocates or an individual advocateother than a senior advocate by way of legal services SP: NilSR: 14 (100%) SP: NilSR: 14.5 SP: NilSR: 15
5A 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 SP: NilSR: 14 (100%) SP: NilSR: 14.5 SP: NilSR: 15
6 Any Services (w.e.f. 01.04.2016)/ Support services (till 31.03.2016) provided or agreed to be provided by Government or local authority excluding,- (1) renting of immovable property, and (2) services specified in sub-clauses (i), (ii) and (iii) of clause (a) of Section 66D of the Finance Act SP: NilSR: 14 (100%) SP: NilSR: 14.5 SP: NilSR: 15
7 (a) Services provided or agreed to be provided by way of renting of a motor vehicle designed to carry passengers onabated valueto any person who is not engaged in the similar line of business After availment of 60% abatement:
SP:
NilSR:14%*40% = 5.6 (100%)
After availment of 60% abatement:

SP: Nil

SR: 5.8

(14.5%*40%)

After availment of 60% abatement:SP: Nil

SR: 6

(15%*40%)

 

(b) Services provided or agreed to be provided by way of renting of a motor vehicle designed to carry passengers onnon-abated value to any person who is not engaged in the similar line of business Without availment of 60% abatement:SP: 7

(14%*50%)

SR: 7

(14%*50%)

 

Without availment of 60% abatement:SP:7.25(14.5%*50%)

SR:7.25(14.5%*50%)

Without availment of 60% abatement:SP:7.5(15%*50%)

SR:7.5(15%*50%)

SP: Any individual, Hindu Undivided Family or partnership firm, whether registered or not, including association of persons, located in the taxable territorySR: Business entity registered as body corporate, located in the taxable territory
8 Services provided or agreed to be provided by way of supply of manpower for any purpose or security services SP: NilSR: 14 (100%) SP: NilSR: 14.5 SP: NilSR: 15
SP: Any individual, Hindu Undivided Family or partnership firm, whether registered or not, including association of persons, located in the taxable territorySR: Business entity registered as body corporate, located in the taxable territory
9 Services provided or agreed to be provided in service portion in execution of works contract:
In case of Original work SP: 2.8 {50% of (14%*40%)}SR: 2.8 {50% of (14%*40%)}

 

SP: 2.9 {50% of (14.5%*40%)}SR: 2.9 {50% of (14.5%*40%)}

 

SP: 3 {50% of (15%*40%)}SR: 3 {50% of (15%*40%)}

 

In all other cases SP: 4.9 {50% of (14%*70%)}SR: 4.9 {50% of (14%*70%)} SP: 5.075 {50% of (14.5%*70%)}SR: 5.075 {50% of (14.5%*70%)} SP: 5.25 {50% of (15%*70%)}SR: 5.25 {50% of (15%*70%)}
SP: Any individual, Hindu Undivided Family or partnership firm, whether registered or not, including association of persons, located in the taxable territorySR: Business entity registered as body corporate, located in the taxable territory
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 SP: NilSR: 14 (100%) SP: NilSR: 14.5 SP: NilSR: 15
11 Any service provided or agreed to be provided by a person involving an aggregator in any manner SP: NilSR: 14 (100%) SP: NilSR: 14.5 SP: NilSR: 15

Effective rates under the Service Tax (Determination of Value) Rules, 2006 [“the Service Tax Valuation Rules”]

We are also summarizing herewith the effective rates of Service tax to be payable under Rule 2A and Rule 2C of the Service Tax Valuation Rules, for easy digest:

Relevant Rule(s) of the Service Tax Valuation Rules Taxable per cent (%) Effective rate of ST: 01.06.2015 to 14.11.2015(%) Effective rate of ST: 15.11.2015 (after Introduction of SB Cess @ 0.5%) to 31.05.2016(%) Effective rate of ST: 1.06.2016 (after Introduction of KKC @ 0.5%)(%)
Rule 2A – Determination of value of services involved in the execution of a Works contract
In case of Works contracts entered into for execution of original works 40 5.6(14%*40%)

 

5.8(14.5%*40%)

 

6(15%*40%)

 

In all other cases 70 9.8(14%*70%)

 

10.15 (14.5%*70%) 10.5(15%*70%)
Rule 2C: Determination of value of service portion involved in supply of food or any other article of human consumption or any drink in a restaurant or as outdoor catering
Service portion in an activity wherein goods, being food or any other article of human consumption or any drink (whether or not intoxicating) is supplied in any manner as a part of the activity, at a Restaurant 40 5.6(14%*40%) 5.8(14.5%*40%) 6(15%*40%)
Service portion in outdoor catering wherein goods, being food or any other article of human consumption or any drink (whether or not intoxicating) is supplied in any manner as a part of such outdoor catering 60 8.4(14%*60%) 8.7(14.5%*60%) 9(15%*60%)

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