Reverse charge applicability

This query is : Resolved

neeraj (Querist)
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04 October 2012 If a company had recd labour charges bill for the period of June'2012 in 5 July 2012.
Whether reverse charge is applicable on it ?

No advnace payment made to contractor

CA Navin Jain

CA Navin Jain (Expert)
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04 October 2012 reverse charge is not applicable since bill is pertain to june month.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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04 October 2012 First of all reverse charge is not applicable on pure labour bill.if it is works contract then What is the date of the bill???
If the date of bill is of july and no payment is made before july then reverse charge is applicable.

neeraj

neeraj (Querist)
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04 October 2012 lets say bill is of security charges for the month of june 2012 bill date is 5 july 2012,no advance payment made

CA Navin Jain

CA Navin Jain (Expert)
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04 October 2012 reveese charge on security services is applicable from 07.08.2012.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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04 October 2012 Agree with Navinji..

neeraj

neeraj (Querist)
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05 October 2012 Sorry sir i have taken example of security charges lets assume it as any service on which reverse charge is applicable from 01 July.
Now please reply if service is provided during June 2012 but bill is received in July 2012

MOHAMMAD SALIM

MOHAMMAD SALIM (Expert)
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12 October 2012 The taxaxbility would be governed by date of bill and not date of recipet of bill. If date of bill is prior to 1st July, the service tax under RCM will be be applicable. However if services were rendered prior to 1st July but bill raised on 1st July , RCM will be applicable... execpt when bill is issued after 30 days from date of completion of service...

Hope this would settle the issue....

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