RCM on car repair bill

CA Altamush Zafar

GST Consultant

15986 Points Posted on 23 May 2017

Yes, its applicable. 50% of service tax

Ashok J

CA Final

880 Points Posted on 23 May 2017

@ zafar. I didn't get y rcm is applicable in this case. pls explain and also let me know the notification no which says so

CA Altamush Zafar

GST Consultant

15986 Points Posted on 23 May 2017

Well if its part of one agreement like that of annual service then its work contract as per service tax.
Partial reverse charge is applicable on works contract.

sachin tyagi

Artical

36 Points Posted on 24 May 2017

Reverse charge is not apply and amount of service tax should be paid fully rs. 75.

CA Altamush Zafar

GST Consultant

15986 Points Posted on 24 May 2017

Why it would be 40%?

CA Altamush Zafar

GST Consultant

15986 Points Posted on 24 May 2017

40/60 is for original works and 70/30 is for repair works.
This is valuation of service.
Where service is already determined separately we don't have to apply any percentage

sachin tyagi

Artical

36 Points Posted on 24 May 2017

you are right sir.

Register Experts

CA

82 Points Posted on 29 May 2017

Well if its part of one agreement like that of annual service then its work contract as per service tax. Partial reverse charge is applicable on works contract.