GANESH DATTATRAYA JOSHI (ACCOUNTANT) (71 Points)
01 December 2015Please Expalin Works Contract Reverse Mechanisum
1) If Service Receiver is Company & Service Giver is Individual or a Firm.
2) Also a Service Giver is Only a Labour Contractor.
Please Explain What will be reverse charge in both the cases.
Thanking you,
Ganesh Joshi
Deepesh Jhawar
(Chartered Accountant)
(41 Points)
Replied 01 December 2015
In case of Works Contract service, Reverse Charge is attacted if the service receiver is a Company and service provider is not a Company.
In such case liability of service provider is 50% and that of service receiver is 50%.
In your given case:
1) Reverse charge applicable
2) Reverse charge will be applicable if the labour contractor is not a Company.
Madhukar N Hiregange
(Chartered Accountant)
(38934 Points)
Replied 02 December 2015
RCM is applicable in case of a works contract ( 50% of value payble by provider subject to exemption; 50% of value payable by Co - no exemption) and NOT in case of labour contract. Manpower supply however is 100% payable under reverse charge.
Deepesh Jhawar
(Chartered Accountant)
(41 Points)
Replied 03 December 2015
In case of labour contractors, RCM is applicable , only if the company controls the labourers and work to be done by them.
RCM is not applicable, If the labour contractor controls the laborers and the work to be done by them.
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