Reverse charge mechanisium in service tax

This query is : Resolved

Mahalingeswar Senapati (Querist)
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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

CA Vikas Acharya

CA Vikas Acharya (Expert)
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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