over 9 years ago
Key examples of services liable to be taxed under reverse charge mechanism: Application fees paid towards processing of application for issuance of advance authorization Security service provided by the government Assignment by the government of the right to use radio spectrum Advertisement or promotion services other than print media Allocation of natural resources by the government or the local authority other than individual farmers Supervision fees charged by the excise authorities at the time of bonding of goods in STPI unit The above listed services will be chargeable only when the turnover of the business entity will be more than 10 lakhs and the gross amount charged for the service exceeds Rs 5000 Key examples of services exempted from chargeable tax include: Court fees taken in any tribunal or court Employee’s state insurance corporation administration charges Employee’s provident fund administration charges Water cess paid to a state pollution board Deposit by employer to employees provident fund Services in the nature of change of land use, commercial building approval, utility services provided by the government Registration fees paid to RTO for registration of vehicles After a careful observation it can be easily said that majority of the services obtained by the business entities would be liable under the reverse change mechanism.