Reverse charge mechanism
This query is : Resolved
Ashutosh Kumar Jha
(Querist)
24 January 2015
Respected Members,
If a company organization hire a car from a proprietorship vender only for 1 day or as and when required and the proprietorship vendor does not have service tax registration then in this case is it mandatory for company to pay service tax under RCM as car is hired only for one day and the vendor has not charged any service tax in invoice? If yes, then is it for abated value or non-abated value?
Please help................
If a company organization hire a car from a proprietorship vender only for 1 day or as and when required and the proprietorship vendor does not have service tax registration then in this case is it mandatory for company to pay service tax under RCM as car is hired only for one day and the vendor has not charged any service tax in invoice? If yes, then is it for abated value or non-abated value?
Please help................
Ganeshbabu K
(Expert)
25 January 2015
1)Yes if payment made to individual,then mandatory to pay service tax under RCM
2)RCM not applicable if it is paid a reimbursement to any of your employee.
Better pay as reimbursement as we cannot get cenvat also for this payment
2)RCM not applicable if it is paid a reimbursement to any of your employee.
Better pay as reimbursement as we cannot get cenvat also for this payment
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