I Want to know that an a builder/developer making a unregistered society and this society taking security services from firm/pvt. co./ ltd co.. this society taking all service tax input credit of ( 12.36%) and no RCM depositing to govt a/c. . It is Right or not. please brief
10 April 2014
As per my view,RCM is not applicable. Reason:The service receiver that is the builder is neither a Company or LLP nor the service provider i.e the security agency is Individual,Firm,Huf.Refernce:Notification 30/2012
Secondly security services used in relation to construction of the society is an eligilble input and the Full credit i.e 12.36% of same is admissible.Reference :Rule2(i) of CCR
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