Reverse charge mechanisam

Queries 843 views 12 replies
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Manager Accounts
75 Points Joined July 2011

We are partner ship firm (service provider) and Service Receiver is also Partner ship firm...

We have provided machinery to him on monthly rental basis, following are queries..

Q1 - Is there applicable Reverse Charge Mechanisam

Q2 - What % do we charge 

Please help.. as We have to raise bill.....

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On 03 June 2015 at 15:59 Report
Replies (12)
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ARTICLED CLERK
60 Points Joined May 2013
There is no reverse charge on renting machinery you have to collect the service tax from the service receiver
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On 03 June 2015 at 16:25
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Manager Accounts
75 Points Joined July 2011

OK,

What will be the Rate to be charged.. is it 3.09%

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On 03 June 2015 at 16:50
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Sr. Officer SPSIL
648 Points Joined August 2012

14% from 01/06/2015

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On 03 June 2015 at 17:01
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account
22 Points Joined June 2015
No reverse charged applicable .
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On 03 June 2015 at 17:44
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Manager Accounts
75 Points Joined July 2011

Thanks for your valuable replies.. Mr. Vix,Nirajji,Rakeshji...

 

 

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On 03 June 2015 at 17:53
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Auditor
23 Points Joined June 2015
You need to check Two Conditions for reverse charge.... Receiver should Be ......BBC Provider Should Be.......HIPA .. BBC stands for Business Body Corporate... HIPA Stands For H..HUF I...INDIVIDUAL P...PARTNERSHIP FIRM A....AOP ... when both conditions are satisfied...then reverse charge applicable
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On 03 June 2015 at 18:57
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Manager Accounts
75 Points Joined July 2011

Thanks A Lot...Bhattiji,

Now It is very clear.... Great way to remember of RCM ...BBC and HIPA..

Again Thanks..

 

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On 03 June 2015 at 19:04
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Auditor
23 Points Joined June 2015
Hey I wrote wrong Service Receiver Should be BBC Service provider should be HIPA... sorry for mistake bro...
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On 03 June 2015 at 19:07
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Auditor
23 Points Joined June 2015
oops ....nahi nahi....thik hi likha tha
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On 03 June 2015 at 19:09
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Manager Accounts
75 Points Joined July 2011

No Prob. at All...

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On 03 June 2015 at 19:11
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chandrakar.ankit@gmail.com
1187 Points Joined June 2011

Reverse Charge is applicable only in case of certian specified services are provided by specified persons, AND RENTING OF MACHINERY DOES NOT FALL IN THAT CATEGORY.

So, no reverse charge will be applicable in your case. The rate to be charged will be 14% for services provided from 01.06.15.

However, if you are billing for the period before 01.06.15, you should charge 12.36%.

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On 05 June 2015 at 11:47
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Manager Accounts
75 Points Joined July 2011

Thank you Ankitji,

Yes, We have raised bill with full rate of Service Tax i.e. 14% as Bill submission date pertains to june-15.

Expecting your kind suport...if required in fututre.

Warm Regards and Great Day Ahead..

 

 

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On 05 June 2015 at 12:14


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