Reverse charge mechanisium in service tax
This query is : Resolved
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
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
04 May 2013
If the Service provider is Company & service receipient is Company, no reverse charge.
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