8 August 2022

Notifications & Circulars

Ministry of Finance 


Service Tax

Tax on arbitral tribunal services to be borne by recipient


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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