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Reverse charge mechanism applicability to partnership firm

Others 3349 views 2 replies

Amit

Accountant

28 Points Joined April 2011

I am working with Partnership Firm. We are receiving Contract labourer ( Manpower Supply) from Properiotor & Partnership firm. So they are not charging service tax under RCM & we are paying whole service tax say 14.50% currently.But after reading article on internet i come to know that RCM is not applicable to " Partnership Firm " so my questions are as follows.

1) RCM is not applicable to " Partnership Firm " is it correct or not ?

2 If it is correct then what about service tax paid by us under RCM & Cenvat Credit taken for the same

Please reply urgently

Replies (2)

Mir Irshad Ali

Partner

192 Points Joined March 2013

There is no liability to pay Service Tax under REverse Charge Mechanism on "partnership Firms" in terms of Notfn No. 30/2012-S.T. The liability to pay Service Tax is on service provider.

As regards Service Tax already paid under RCM, since Cenvat Credit of the same has already been taken by you, refund of the same cannot be claimed.