Rcm on work contract

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kumar kanakum (Querist)
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17 May 2017 If the Civil Contractor has given bill for Supply of material and Providing the service for construction work. whether the service bill can fall under work contract and whether they need we need to pay service tax under RCM basics if the provider is Individual and recipient is a corporate.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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17 May 2017 Service bill will fall under works contract and service tax payable under RCM at 15% on 50% of such bill.

kumar kanakum

kumar kanakum (Querist)
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17 May 2017 Can u please describe more, when I have checked the definition of works contract. I understand it requires two steps
Any contract in which transfer of goods take place and
Services in relation to erroction fabrication etc.
When service providers gives two bills separately
One for material and an other for Labour
Where is the question of transfer of goods. Involved in service bill to charge rcm

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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18 May 2017 You are doing construction work where material is involved and transfer of property happens it squarely falls under works contract.

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