Service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 March 2015 HI EXPERT.
plz let me know whether repair & maintenance of Equipment like RO, Fridge, A/C etc.
does this service falls in RCM

if the service provider is partnership firm and service receiver is body corporate,

plz reply...

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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14 March 2015 Yes it falls under reverse charge being service provided to body corporate.

Querist : Anonymous

Querist : Anonymous (Querist)

14 March 2015 Dear seetharaman sir
firstly thanks for your reply.

some of the tax expert has said no reverse charge is applicable on repair & maintenance service,

plz explain this issue..

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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14 March 2015 Repair and maintenance service is specifically covered under works contract hence reverse charge applicable.

Querist : Anonymous

Querist : Anonymous (Querist)

20 March 2015 DEAR SEETHARAMAN SIR
SIR AS YOU HAVE MENTIONED THE RCM WILL BE APPLICABLE. BUT IF I KNOW THE EXACT VALUE OF MATERIALS AS WELL AS THE SERVICE VALUE ALSO. EVEN IN THIS CASES RCM WILL BE APPLICABLE OR NOT,

AND ALSO TELL ME IF THE SERVICE PROVIDER HAVING TURNOVER BELOW THE ST EXEMPTION LIMIT. CAN SP CHARGES ST UNDER RCM DESPITE HAVING TURNOVER BELOW THE 1000000

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 March 2015 If it is a works contract for repairs and maintenance service RCM is applicable.
If RCM is applicable you have to pay service tax even if service provider is having turnover below 10 lakhs.

Querist : Anonymous

Querist : Anonymous (Querist)

20 March 2015 DEAR SIR
IF SERVICE PROVIDER KNOW THE VALUE OF MATERIALS AND SERVICE ALSO. IN THIS CASES HOW MUCH 12.36% ST WILL BE CHARGED IF THE BILL AMOUNT IS 100000
IN THIS I DO KNOW THE 80000 WAS MATERIALS AND 20000 IS MY SERVICE EVEN IN THIS CASES RCM WILL BE APPLICABLE IF YES ON WHICH PART ST TO BE CHARGED WHETHER 50%, 50% UNDER RCM OR ON 20000
PLEASE CLARIFY

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 March 2015 If break up is available, on service portion 12.36% ST is payable.
Yes RCM applicable at 50% on 20000.

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