Computation Format 

Comparison of Normal Charge and Reverse Charge - Concept of RCM (Reverse Charge and Partial Reverse  Charge)

 

Registration And Exemption Limits

New image Normal Charge ANd Reverse charge.png

SUMMARY

Turnover Legal Requirement
Less than 9 Lacs No Registration
No Return, No Challan
9-10 Lacs Registration Required,
No Challan, But Nil Return Required
> 10 Lacs Registration + Challan + Return all Required
  1. Tax Practical
  2. Practical Service Tax
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Transcript

Normal Charge Service tax is payable on (a) Service provided (b) Advance Received (c) Service provided − Abatement Abated Value (d) Service Provided − Exempt Balance taxable (e) Service Provided − Pure Agent Balance taxable Reverse Charge Service tax is payable on (a) Service Received (b) Advance Paid (c) Service Received − Abatement Abated Value (d) Service Received − Exempt Balance taxable (e) Service Received − Pure Agent Balance taxable Normal Charge Registration Limit If taxable turnover exceeds or likely to exceed 9 lacs then compulsory Registration . Note :- Turnover of all services to be taken . (Exempt service not to be taken) Exemption Limit If turnover up to 10 lacs in previous year , then exempt up to 10 lacs in current year Reverse Charge Registration Limit Compulsory Registration (No minimum limit) . Exemption Limit There is No minimum exemption limit

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .