Rcm in work contract
This query is : Resolved
Pankajsarkar
(Querist)
14 August 2015
Dear Sir/madam
One party billed to us Rs. 200000.00 against the labour charges of painting work. In that invoice service tax registration no is not mentioned i.e service provider is unregistered. What will be tax liability to us i.e service receiver.
1. It is under RCM and 50-50 ratio.
2. Whether we need to pay service provider part to him (Rs. 200000.00*14%/50%)Rs.14000.00. Total payment to service receiver Rs. 214000.00 and Rs. 14000.00 to pay to Govt.
Or.
Only Rs. 200000.00 to pay to the service provider and only Rs. 14000.00 (Receiver`s share) to pay to Govt.
or.
Only Rs. 200000.00 to pay to service provider and Rs. 28000.00 (Total share) paid to Govt.
Please reply.
One party billed to us Rs. 200000.00 against the labour charges of painting work. In that invoice service tax registration no is not mentioned i.e service provider is unregistered. What will be tax liability to us i.e service receiver.
1. It is under RCM and 50-50 ratio.
2. Whether we need to pay service provider part to him (Rs. 200000.00*14%/50%)Rs.14000.00. Total payment to service receiver Rs. 214000.00 and Rs. 14000.00 to pay to Govt.
Or.
Only Rs. 200000.00 to pay to the service provider and only Rs. 14000.00 (Receiver`s share) to pay to Govt.
or.
Only Rs. 200000.00 to pay to service provider and Rs. 28000.00 (Total share) paid to Govt.
Please reply.
CA R SEETHARAMAN
(Expert)
14 August 2015
Pay only Rs. 2,00,000 to service provider and pay Rs. 14,000 to Govt under RCM.
Pankajsarkar
(Querist)
14 August 2015
Thank you very much sir ji
Pankajsarkar
(Querist)
17 August 2015
Dear Sir
if the above invoice is for painting (Labour) of Hatchery building what will be the service tax???
Please reply
if the above invoice is for painting (Labour) of Hatchery building what will be the service tax???
Please reply
20 July 2025
The applicable service tax is 14% (works contract labor)
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