Services by Recovery Agent to banking company or a financial institution or a NBFC under Reverse Charge Mechanism of Service Tax

Services by Recovery Agent to banking company or a financial institution or a NBFC under Reverse Charge Mechanism of Service Tax No.10/2014-Service Tax As per the notification The amendment says that Services provided by recovery agents to banks, financial institutions and NBFC to be brought under reverse charge mechanism; service receiver will be liable to pay service tax. The words recovery agents would also include seizing agencies as well as they too help in recovery of receivables and provide recovery services. The changes are with effect from 11th July2014 As per the Amendment under Service Tax & Introduction of Service Tax on Recovery agent under Reverse charge, same is given for understanding:- Date of Applicability:- 11.07.2014 Applicable for Service Receiver- Banks, Financial Institutes & Non Banking Companies. 100% of service tax shall be deposited by service receiver. Service tax payable under reverse charge cannot adjust with input credit of services CENVAT Credit of service tax paid under full reverse charge shall be available to the assessee immediately on payment of such service tax To Download Notification No.10/2014-Service Tax click here