Work contract

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This query is : Resolved

MAHESH GIDWANI (Querist)

24 July 2014 for servise receiver reverce charge is applicable on work contract only when vat/slaes tax is charged in bill for material. what if vat/sales tax not charged by servise provider becouse he is not registered so still reverse charge needs to creat?

Ganeshbabu K

Ganeshbabu K (Expert)

25 July 2014 If he does service along with purchase of material by him only
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whether he charge vat in his bill or not it is works contract and RCM applicable

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MAHESH GIDWANI

MAHESH GIDWANI (Querist)

21 February 2015 sir please clarify one more doubt if in bill servise amount and material amount is mentione separately then RCM apply as servise amount*12.36%*50% to servise provider? and 50 % to service receiver am i correct

Ganeshbabu K

Ganeshbabu K (Expert)

21 February 2015 Yes.if RCM applicable servicetax applicable @6.18%(50% of 12.36) for service provider and service receiver

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MAHESH GIDWANI

MAHESH GIDWANI (Querist)

21 February 2015 sir RCM apllicable or not in such case of bill is mentioned servise amount & materail amount separately

Ganeshbabu K

Ganeshbabu K (Expert)

23 February 2015 If you have availed work contract service RCM applicable.

Pattern of Bill does not give relaxation from RCM liability.

If you don't want to pay RCM service tax do transactions only with Business enitty registered as body corporate(LLP & PVT LTD,LTD).Where service provider is responsible for 100% of service tax

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