Service Tax under reverse Charge On or After 01.06.2016

Sl. No. Service Abatement if any Effective ST Rate (including SWC & KKC) % payable by service provider % payable by service recipient ST Rate for Service Recipient (including SWC & KKC) 1 Services  provided or agreed to be provided  by a goods transport agency in respect of transportation  of goods by road 70% 4.5% NIL 100% 4.5% 2 Services of goods transport agency in relation to transportation of used household goods. 60% 6.0% 6% Not covered in Reverse Charge NIL 3 Services  provided or agreed to be provided  by way of sponsorship 0 15% NIL 100% 15% 4 Services  provided or agreed to be provided  by an arbitral tribunal 0 15% NIL 100% 15% 5 Services provided or agreed to be provided by a firm of advocates or an individual advocate other than a senior advocate by way of legal services 0 15% NIL 100% 15% 6 Services  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,1994 0 15% NIL 100% 15% 7 Services  provided or agreed to be provided  by way of renting of a  motor vehicle designed to carry passengerson abated value* to any person who is not engaged in the similar line of business At present, there is abatement of 60% on the gross value of renting of motor-cab services, provided no Cenvat credit has been taken. It is being made clear by way of inserting an explanation that FMV of all the goods (including fuel) supplied by the service recipient in relation to serviceswhether or not supplied under the same contract ot any other contract, shall be added in the consideration charged. 60% 6.00% NIL 100% 6.00% 8 Services  provided or agreed to be provided  by way of renting of a  motor vehicle designed to carry passengerson non abated value** to any person who is not engaged in the similar line of business 0 15% 50% 50% 7.5% 9 Transport of passengers, with or without accompanied belongings, by- a) contract carriage and air conditioned stage carriage other than motorcab. b) a radio taxi 60% 6.00% 6% Not covered in Reverse Charge NIL 10 Services  provided or agreed to be provided  by way of supply of manpower for any purpose or security services 0 15% NIL 100% 15% 11 Services  provided or agreed to be provided  in service portion in execution  of works contract-ORIGINAL WORK 60% 6% 50% 50% 3.0% Services  provided or agreed to be provided  in service portion in execution  of works contract :- OTHER WORKS like Maintenance, repair, reconditioning, servicing of GOODS,  maintenance, repair, completion, finishing services of an immovable property 30% 10.50% 50% 50% 5.25% 12 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 0 15% NIL 100% 15% 13 Any service provided or agreed to be provided by a person involving an aggregator in any manner 0 15% NIL 100% 15% 14 Payment to Independent Director 0 15% NIL 100% 15% * If the service provider avails abatement ** If the service provider doesnot avails abatement Note In line with Rule 5 of Point of Taxation Rules 2011, KKC will not apply in the following cases:- 1. Where the invoice raised and payment payment made before KKC becomes applicable ( i.e. 01.06.2016) 2. Where the payment received before applicabality of KKC (i.e. 01.06.2016) but Invoice is raised after 01.06.2016 3. Where the payment received before applicabality of KKC (i.e. 01.06.2016) but Invoice is raised on or before 14.06.2016 (i.e. within 14 days of applicabality of KKC) For Service receiver (In case of Reverse Charge) in ine with Rule 7 Of POT Rules 1. If provision of service and issuance of invoice takes place before the change in ST Rate (i.e. 01.06.2016), point of taxation shall be the Date of Invoice even if the payment is made subsequent to change
Sl. No.	Service	Abatement if any	Effective ST Rate (including SWC & KKC)	% payable by service provider	% payable by service recipient	ST Rate for Service Recipient (including SWC & KKC)
1	Services  provided or agreed to be provided  by a goods transport agency in respect of transportation  of goods by road	70%	4.5%	NIL	100%	4.5%
2	Services of goods transport agency in relation to transportation of used household goods.	60%	6.0%	6%	Not covered in Reverse Charge	NIL
3	Services  provided or agreed to be provided  by way of sponsorship	0	15%	NIL	100%	15%
4	Services  provided or agreed to be provided  by an arbitral tribunal	0	15%	NIL	100%	15%
5	Services provided or agreed to be provided by a firm of advocates or an individual advocate other than a senior advocate by way of legal services	0	15%	NIL	100%	15%
6	Services  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,1994	0	15%	NIL	100%	15%
7	Services  provided or agreed to be provided  by way of renting of a  motor vehicle designed to carry passengerson abated value* to any person who is not engaged in the similar line of business At present, there is abatement of 60% on the gross value of renting of motor-cab services, provided no Cenvat credit has been taken. It is being made clear by way of inserting an explanation that FMV of all the goods (including fuel) supplied by the service recipient in relation to serviceswhether or not supplied under the same contract ot any other contract, shall be added in the consideration charged.	60%	6.00%	NIL	100%	6.00%
8	Services  provided or agreed to be provided  by way of renting of a  motor vehicle designed to carry passengerson non abated value** to any person who is not engaged in the similar line of business	0	15%	50%	50%	7.5%
9	Transport of passengers, with or without accompanied belongings, by- a) contract carriage and air conditioned stage carriage other than motorcab. b) a radio taxi	60%	6.00%	6%	Not covered in Reverse Charge	NIL
10	Services  provided or agreed to be provided  by way of supply of manpower for any purpose or security services	0	15%	NIL	100%	15%
11	Services  provided or agreed to be provided  in service portion in execution  of works contract-ORIGINAL WORK	60%	6%	50%	50%	3.0%
	Services  provided or agreed to be provided  in service portion in execution  of works contract :- OTHER WORKS like Maintenance, repair, reconditioning, servicing of GOODS,  maintenance, repair, completion, finishing services of an immovable property	30%	10.50%	50%	50%	5.25%
12	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	0	15%	NIL	100%	15%
13	Any service provided or agreed to be provided by a person involving an aggregator in any manner	0	15%	NIL	100%	15%
14	Payment to Independent Director	0	15%	NIL	100%	15%
*	If the service provider avails abatement
**	If the service provider doesnot avails abatement
Note	In line with Rule 5 of Point of Taxation Rules 2011, KKC will not apply in the following cases:-
	1. Where the invoice raised and payment payment made before KKC becomes applicable ( i.e. 01.06.2016)
	2. Where the payment received before applicabality of KKC (i.e. 01.06.2016) but Invoice is raised after 01.06.2016
	3. Where the payment received before applicabality of KKC (i.e. 01.06.2016) but Invoice is raised on or before 14.06.2016 (i.e. within 14 days of applicabality of KKC)
	For Service receiver (In case of Reverse Charge) in ine with Rule 7 Of POT Rules
	1. If provision of service and issuance of invoice takes place before the change in ST Rate (i.e. 01.06.2016), point of taxation shall be the Date of Invoice even if the payment is made subsequent to change

(Author can be reached at By- Sonu Mehla Mobile- 8285910007 E-Mail- sonuandfirm@gmail.com)