TMI BlogForward charge mechanismX X X X Extracts X X X X X X X X Extracts X X X X ..... What is Forward charge mechanism under service tax ??? How is it different from RCM ??? Please suggest. - Reply By Ganeshan Kalyani - The Reply = Liability of service tax that need to be paid by recipient of service means reverse charge. services which are not under reverse charge list are covered by forward charge where service provider will have to pay the tax. - Reply By MARIAPPAN GOVINDAR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AJAN - The Reply = In forward charge mechanism the service provider is to levy service tax and remit the same to the credit of the Central Government. In Reverse Charge mechanism, which is opposite to Forward charge, the service recipient is to pay the service tax to the credit of Central Government on services notified by the Central Government for this purpose. - Reply By surya narayana - The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reply = Dear Friend, While concurring with the views expressed by my learned friends, I would like to put in a simple way as per below : In forward charge Service provider will pay and in reverse charge Person liable to pay the ST will pay.in terms of Sec.68(2) of FA,1994. Best Regards Suryanarayana - Reply By Ganeshan Kalyani - The Reply = Sri Suryanarayana Ji, for discussion ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purpose i would like to discuss on the subject in view of upcoming GST . Under GST the threshold is so low that now every assessee would have to get themself register. so all would be paying tax and doing compliances . then why was there a need to bring reverse charge concept under GST . Request you to please share your views on this . - Reply By surya narayana - The Reply = Dear Ganesh Ji ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , In my view,this aspect is totally depend on the Government's view and as far as the Government wanted to collect the Service tax on the services provided by foreign service providers they may continue the reverse charge mechanism since the GOI is not having any Authority to collect the tax from the foreign service providers who provides the services from a non-taxable territory. In view of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this, we have no option except, to leave this to the wisdom of the Government whether to continue the reverse charge concept in the proposed GST or not. Best Regards Suryanarayana - Reply By Bijay Shrestha - The Reply = Thanks all for kind suggestions. As far as reverse charge under GST is concerned, in my view it is for better compliance and to reduce burden on certain assessees, govt is in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cluding in GST. but as suryanarayan sir said, final view is still to be decided by the govt. lets see what comes up. - Forward charge mechanism - Query Started By: - Bijay Shrestha Dated:- 8-11-2016 Service Tax - Got 6 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... india.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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