Service tax under reverse charge mechanism

Save Share

This query is : Resolved

P.C. Joshi (Querist)
Follow

14 October 2015 A company has hired motor cars/coaches for its visitor from a rent a car company. The service provider has charged service tax @5.6%(40% of the actual rate).

Now the query is whether the srvice receiver is liable to pay again 5.6% of the total bill amount OR if he can pay the bill amount( which includes 5.6% ST) to the service provider.

Can anyone please explain the above.

Thanks

P.C. Joshi

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

15 October 2015 No RCM applicable if service provider is a company. Pay the bill amount to the service provider.

P.C. Joshi

P.C. Joshi (Querist)
Follow

15 October 2015 Sir,
In the above query what will be the answer if the service provider is not a company?

Secondly, whether a partnership firm is considered a company or not.

Thanks

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

15 October 2015 Partnership firm is not a company. If service provider is not company then RCM will be applicable.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now