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Reverse charge mechanism - service tax

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Amruta Pandit

Accounts Executive

28 Points Posted on 31 March 2015

Hi all,

I need help regarding the new notification of service tax 30/2012 dtd 20/06/2012. For the constuction industry i.e. works contract assessee, the service provider needs to bear 50% portion of service tax amount in the bill. Is this applicable for all types of services provided? For example if Mr. V has rented out a property to ABC construction co ltd on which service tax is applicable. Does Mr. V have to bear 50% portion of the Tax liability?

Amruta

Replies (1)

Saurabh Maheshwari

B.com ACA

4340 Points Posted on 31 March 2015

Your example of Mr. V is a case of Renting of immovable properties and not works contract.

In case of renting of immovable prop., 100% liabity is of s..rovider.

In case of Works contract if s.provider is HUF,individual,firm ,AOP and s.receiver is business entity registered as body corporate , then 50% liab. of bothe s.reciever and peovider under partial RCM.

In any other case,100% liabity of service provider.