3. RCM Services - Import
Type of Service Service
Recipient
% payable by
Provider
% payable
by Receiver
Provided from non
taxable territory to
taxable territory
Any
Person
Nil 100%
Note : -
Non Taxable territory also includes Jammu &
Kashmir.
To be read in conjunction with Place of Provision
Rules to determine the location of service.
4. RCM Services – Recovery
Agent
Type of
Service
Service Recipient % payable
by Provider
% payable
by Receiver
By a
Recovery
Agent
Banking Company,
NBFC, Financial
Institutions
Nil 100%
Note : -
Only “Recovery” services covered under reverse
charge and not “Collection” services.
5. RCM Services – Works Contract
Type of Service Service
Recipient
% payable
by Provider
% payable
by Receiver
WCT by a
Individual, HUF,
Firm or AOP
Body Corporate 50% 50%
Note : -
Works contract as defined in Sec 65B of the
finance act, 1994.
After abatement of 60% effective rate to be 2.472%
on recipient and provider for original works.
6. RCM Services – Manpower
Type of Service Service
Recipient
% payable
by Provider
% payable
by Receiver
Manpower
supply by a
Individual, HUF,
Firm or AOP
Body Corporate 25% 75%
Note : -
Manpower supply includes Security services also.
Manpower supply would mean pure supply of
manpower with no supervision or control over the
manpower by the provider.
7. RCM Services – Renting Vehicle
Type of Service Service
Recipient
% payable
by Provider
% payable
by Receiver
a Individual,
HUF, Firm or
AOP not in
similar line
Body Corporate Nil (with
abatement)
50% (without)
abatement
100% (with
abatement)
50% (without)
abatement
Note : -
Applies only in case it has been provided not in the
same line of business. Such as vehicle renting to a
construction company
8. RCM Services – Government
Type of Service Service
Recipient
% payable
by Provider
% payable
by Receiver
Government or
Local Authority
Business Entity Nil 100%
Note : -
Any “Support” service by the government for
which a consideration is charged by them.
To a “Business entity” not a “body corporate” so
individuals, HUF etc. also covered under RC.
9. RCM Services – Director
Type of Service Service
Recipient
% payable
by Provider
% payable
by Receiver
Director Body Corporate Nil 100%
Note : -
Only non executive directors covered.
Any amount paid to them is to be subject to
service tax under reverse charge by the company.
10. RCM Services – Advocate
Type of Service Service
Recipient
% payable
by Provider
% payable
by Receiver
Legal Services Business Entity Nil 100%
Note : -
Only Legal services (under any law) by Individual
advocates under the ambit of reverse charge.
To a “Business entity” not a “body corporate” so
individuals, HUF etc. also covered under RC.
11. RCM Services – Sponsorship
Type of Service Service
Recipient
% payable
by Provider
% payable
by Receiver
Any sponsorship Body Corporate
or a Firm
Nil 100%
Note : -
Sponsorship of sporting events excluded.
To a body corporate or a partnership firm.
12. RCM Services – Goods Transport
Type of Service Service
Recipient
% payable
by Provider
% payable
by Receiver
Good transport
services by
road
Company, Firm,
Factory,
Society, Excise
Nil 100%
Note : -
Service recipient is the person who pays or is liable
to pay the freight.