Service tax - reverse charge mechanism on labour work.

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Amitsinh Choudhary (Querist)
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19 January 2016 Our Pvt. Ltd. Company hires services of a firm (Not regd. to ST) for Denting & Painting of Four Wheeler, Service Provider raises bill of Labour Work as material is provided(Colour) by us & we pay Service Tax on total labour charges to Govt.
Whether we should pay ST on Reverse Charge Mechanism.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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19 January 2016 Check it falls under works contract and you are liable to pay service tax under RCM on 50% value.

Ashish Chaudhary

Ashish Chaudhary (Expert)
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20 January 2016 If entire material is provided by service receiver, it is not works contract and not liable under RCM.
Labour charges for repair services cannot be said to manpower supply service hence not liable under RCM under this category also.