We have done electrical work at our factory, where in the contractor has charged us vat on supply of items and has Charged Rs.13000/- towards labor in the same bill. We are a pvt. ltd. company. Contractor is an Individual & is not registered under RCM.
Please let me know: 1. Whether this transaction falls under RCM 2. what will be the assesseble value 3.what will be the percentage of composition if applicable. 4. whether credit can be taken on service tax.
29 July 2015
1 Yes this transaction falls under RCM. 2 The assessable value is Rs 13,000. 3 14% service tax payable on 50% of 13,000. 4 No cenvat credit can be taken.
CAclubindia
