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Rcm on works contract

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Querist : Anonymous (Querist)
09 March 2015 a co. has done repairing of its machinery.vendor has charged service tax.is it correct or is it fall under rcm?

09 March 2015 If Individual has provided service to company, reverse charge mechanism is applied if there is work contract (supplied of any material with repairing work. In that case, 50% service tax is charged in bill and 50% service tax is required to pay by company itself through reverse charge.

If it is only repairing work, no RCM is applicable and all the service tax should be charged in bill.




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