Reverse Charge Mechanism

Services covered under reverse charge system vide Notification No. 30/2012-ST Dated-20^th June, 2012 with effect from 01.07.2012:

#	Description of a Service	Service provider	Service Receiver	Percentage of service tax payable by the person providing service	Percentage of service tax payable by the person receiving the service
1.	Insurance Services: in respect of services provided or agreed to be provided by an insurance agent to any person carrying on insurance business	Insurance Agent	Business man carrying on insurance business	Nil	100
2.	GTA: in respect of services provided or agreed to be provided by a goods transport agency in respect of transportation of goods by road	Goods transport agency	Consignor or Consignee is specified person	Nil	100
3.	Sponsorship: in respect of services provided or agreed to be provided by way of sponsorship	Any person	Body corporate or partnership firm	Nil	100
4.	Arbitral Tribunal: in respect of services provided or agreed to be provided by an arbitral tribunal	Arbitral tribunal	Business entity	Nil	100
5.	Advocate Services: in respect of services provided or agreed to be provided by individual advocate	Individual Advocate	Business entity	Nil	100
5A.	A director of a company: In respect of services provided or agreed to be provided by a director of a company to the said company	A director of a company	To the said company	Nil	100
6.	Support Services: in respect of services provided or agreed to be provided by way of support service by Government or local authority	Government	Business entity	Nil	100
7.	Rent a Cab Service: (a) In respect of services provided or agreed to be provided by way of renting or hiring any motor vehicle designed to carry passenger on abated value. (b) In respect of services provided or agreed to be provided by way of renting or hiring any motor vehicle designed to carry passenger on non-abated value.	Individual/HUF/ Proprietary or partnership firm/AOP	Company under Companies Act, 1956	Nil 60	100 40
8.	Supply of Manpower/ security services: in respect of services provided or agreed to be provided by way of supply of manpower for any purpose	Individual/HUF/ Proprietary or partnership firm/AOP	Company under Companies Act, 1956	25	75
9.	Works Contract Services: in respect of services provided or agreed to be provided by way of works contract	Individual/HUF/ Proprietary or partnership firm/AOP	Company under Companies Act, 1956	50	50
10.	in respect of any taxable services provided or agreed to be provided by any person who is located in a non-taxable territory and received by any person located in the taxable territory	Any person	Any person	Nil	100

 Availment of Cenvat Credit by service receiver:

Service receiver may claim the credit of service tax paid based on the invoice issued by the service provider. For service tax paid on reverse charge, credit may be claimed based on the TR-6 challan by which payment is made. Service receiver will not pay the service tax from cenvat credit under the reverse charge mechanism.

Chief Financial officer [CFO] - Companies Act 2013

Position of CFO under companies Act 2013

• CFO is identified as Key Managerial Personnel u/s 2(19) 
• CFO is identified as ‘officer in default’ u/s 2(59) and 2(60). 
• CFO to be appointed by means of a Board Resolution u/s 203 
• CFO shall not hold office in more than one company unless it is a subsidiary u/s 203(3) 
• CFO to be named in the prospectus or information memorandum for issue of securities u/s 26. 
• CFO is responsible for statements in prospectus, if he authorises the issue. section 34, 35. 
• CFO is directly responsible for maintenance of books of accounts sec. 128(6). 
• CFO is responsible for furnishing ‘true and fair’ view of the state of affairs in the financial statements u/s 129. 
• CFO is responsible for filing financial statements with Registrar of Companies sec. 137. 
• CFO authorises financial statements sec. 134. 
• CFO is responsible for adhering to accounting standards Sec. 133. 
• A director may be appointed as CFO (Table A -77). CFO can be a director. 
• Where a CFO has to authorise a statement, and if the CFO is also a director, he shall authorise the statement as CFO. (Table A – 78)