14 October 2019


Notifications & Circulars

Ministry of Finance 

18.05.2016

Service Tax

Tax on arbitral tribunal services to be borne by recipient

MANU/DSTX/0034/2016

Service tax liability for services provided by an arbitral tribunal shall be on the service recipient if it’s a business entity.

The Department clarified that services provided, or agreed to be provided, to a business entity with a turnover exceeding Rs. 10 lakh are taxable under the reverse charge mechanism.

It dismissed suggestions that service tax is such instances would be payable by individual arbitrators as a forward charge. It reiterated that liability to make good service tax is on the service recipient.

Tags : Service tax arbitral tribunal recipient reverse charge

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