Applicability of rcm
This query is : Resolved
13 March 2014
Dear All,
Please tell me whether Reverse Charge Mechanism is applicable on Fabrication Works?If Yes, at which rate.
Please tell me.
Thanks in advance.
Please tell me whether Reverse Charge Mechanism is applicable on Fabrication Works?If Yes, at which rate.
Please tell me.
Thanks in advance.
15 March 2014
1. Fabrication works is covered under works contract. Accordingly service tax is applicable on the said service.
2. Service tax rate is 12.36%.
3. If the material value & labour charges are separately mentioned on the invoice, then service tax will be charged only on the labour charges.
4. If the material value & labour charges are NOT separately mentioned on the invoice, then following will be applicable:
-Pay Service Tax on 40% value of original work
-Pay Service Tax on 70% value of maintenance or repair or reconditioning or restoration or servicing of any goods
-Pay Service Tax on 60% value of all other works contract
2. Service tax rate is 12.36%.
3. If the material value & labour charges are separately mentioned on the invoice, then service tax will be charged only on the labour charges.
4. If the material value & labour charges are NOT separately mentioned on the invoice, then following will be applicable:
-Pay Service Tax on 40% value of original work
-Pay Service Tax on 70% value of maintenance or repair or reconditioning or restoration or servicing of any goods
-Pay Service Tax on 60% value of all other works contract
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CG Tax On residential property
- Applicable TDS for Purchase of Flat from NRI
- Claiming exemption of perquisite for employee-owned car under New Tax Regime in ITR-2
- Under construction property in ITR
- Gift of mutual fund units to daughter
- Not able to file ITR
- Upload Level ValidationITR3Category of Defect B/D
- Building tax payment deduction in rental Income
- Reporting of STCG on Property in ITR
- NRI ITR2 account in 2025-26 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
