Reverse charge mechanisium in service tax
This query is : Resolved
Mahalingeswar Senapati
(Querist)
30 April 2013
Dear Sir,
Whether AMC service provider is came under reserve charge mechanisium ?
If Yese what is the percentage (%) of tax is liable to service receiver.
Thank U
Whether AMC service provider is came under reserve charge mechanisium ?
If Yese what is the percentage (%) of tax is liable to service receiver.
Thank U
CA Vikas Acharya
(Expert)
30 April 2013
if AMC is with material and there is a composite contract, for material and service, then it will fall into works contract and then..
IF,
BY (SP) - any individual, Hindu Undivided Family or partnership firm, whether registered or not, including association of persons, located in the taxable territory
TO (SR) - a business entity registered as body corporate, located in the taxable territory; providing to a body corporate,
TAX LIABILITY: when AMC of goods 70% of the Total amt charged is taxable. 12.36% on that
when AMC of Immovable property = 60% of the Total amt. charged is taxable. 12.36% on that
NOW under reverse charge SP and SR will pay half half of the tax i.e, 50% 50%
BUT NOTE AS MENTIONED ABOVE IN FIRST SENTANCE ONLY IN CASE IT FALLS UNDER WORKS CONTRACT,
OTHER WISE normal tax 12.36% on 100% value.
NO REVERSE CHARGE IF NO WORKS CONTRACT
IF,
BY (SP) - any individual, Hindu Undivided Family or partnership firm, whether registered or not, including association of persons, located in the taxable territory
TO (SR) - a business entity registered as body corporate, located in the taxable territory; providing to a body corporate,
TAX LIABILITY: when AMC of goods 70% of the Total amt charged is taxable. 12.36% on that
when AMC of Immovable property = 60% of the Total amt. charged is taxable. 12.36% on that
NOW under reverse charge SP and SR will pay half half of the tax i.e, 50% 50%
BUT NOTE AS MENTIONED ABOVE IN FIRST SENTANCE ONLY IN CASE IT FALLS UNDER WORKS CONTRACT,
OTHER WISE normal tax 12.36% on 100% value.
NO REVERSE CHARGE IF NO WORKS CONTRACT
CA S K MISHRA
(Expert)
04 May 2013
If the Service provider is Company & service receipient is Company, no reverse charge.
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
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- Tax on Amount transferred in HUF Account
- Nursery business
- GST input credit on commercial property
- GST REFUND ISSUE ON PURCHASE OF PLANT AND MACHINERY
- Working on Gold wastage during Melting of old gold jewellery
- TDS on Dashcam rent and allied services
- HOW TO ADJUST CREDIT NOTE AMOUNT ?
- Gift to nri relatives residing in usa
- Capital Gains Tax on Inherited Mutual Fund
- Subject: Legal Remedy for Removal of Income Tax Demand for AY 2024–25 – Charitable Trust
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
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
