Rcm

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 March 2015 Dear all
plz let me know in the contract of repair &
maintenance. the condition for applicability of RCM...

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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28 March 2015 RCM is applicable when service provider is an individual, a HUF, a firm or an AOP and service receiver is a body corporate business entity.

Querist : Anonymous

Querist : Anonymous (Querist)

28 March 2015 Dear sir
does materials not reflect the RCM in work contract. please solve this materials issued in work contract because in some contract the materials is supplied by service recipient and in some contract materials is supplied by
service provider.

please clarify.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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28 March 2015 In the contract break up value for material is available pay service tax only on service portion. If break up is not available pay service tax after availing abatement. 30% abatement is available for this contract pay service tax on 70%.

Querist : Anonymous

Querist : Anonymous (Querist)

28 March 2015 Dear sir
you means to say the materials will not reflect the RCM. whether it is contract for original work or repair & maintenance work.
am i correct...

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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28 March 2015 If materials are included abatement can be availed. For original work service tax payable on 40% value(under RCM it will be 20% service provider and 20% by service receiver) and for repair works service tax payable on 70% value.