Applicability of rcm

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This query is : Resolved

Akshay Gupta (Querist)

25 March 2014 If a company avails a service of relocation of official goods from one office to another then is it liable to service tax under RCM?

CA. RAVIKUMAR

CA. RAVIKUMAR (Expert)

25 March 2014 Yes taxable under RCM.

Exemption is available for following

1)Transportation of agricultural produce.
2)Gross Amount Rs 1500/- in case of Multiple consignment and Rs 750/- in case of single consignment
3) Transportation of foodstuff Other goods like chemicals, fertilizer, oil cakes,relief material for victims of disaster and lastly defense or military equipment.

Abatement:

75% abatement is available

Akshay Gupta

Akshay Gupta (Querist)

27 March 2014 Actually in this case the company has availed the service of transportation of IT equipments.
So, would it be covered under cargo handling service if it involves packing and transportation?
Plese read the link below.
https://indiabudget.nic.in/ub2008-09/cen/dojstru2.pdf

CA. RAVIKUMAR

CA. RAVIKUMAR (Expert)

27 March 2014 If that is the case it becomes a cargo handling service and RCM is not applicable on the same.

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