Service Tax Reverse charge Mechanism

The Government has issued notification no: 30/2012-ST dated 20-06-2012 extending the applicability of Reverse Charge Mechanism to certain more services. Under this system instead of Service Provider, the Service Receiver and in certain specified categories   both the service provider and service receiver have been made liable to pay service tax as per prescribed percentages.  Under these provisions, it is mandatory on the Service Receiver to pay Service Tax on receipt of service from the specified categories, subject to the conditions stipulated in the afore stated notification.
 Government of India has added 7 more services to the reverse charge mechanism which shall be applicable from 1-7-2012. Every service receiver availing these services is obliged to obtain service tax  registration in case he is not a registered Service Provider or  have to amend their service tax registration if he is an existing service provider.