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%) |