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Reverse charge on maintanence or repair service

Queries 338 views 2 replies

kannansugumaran

tax consultant

44 Points Joined October 2011

DEAR SIR,

My Client is a Service Provider and they are PARTNER SHIP FIRM. They are providng service in the Head of Maintanece or Repair Service. Our Service Receiver is Asking us to Charge 6.18% in our bill. Because they are Paying the balance in Reverse Charge mechanism. My Question is Whether it is applicable for Maintanence or Repair Service and if it is Applicable, What Shall we do, in our billing and how we show that in the Service Tax Returns. Please Guide me in this thing.

Replies (2)

CA and CMA Ravinder Singh

CA and CMA

853 Points Joined January 2010

50 % reverse charge is applicable in the case of works contract....of the service is is the nature of works contract, then its ok....

Arun Kumar Singh

GST Advocate

15220 Points Joined January 2009

Maintenance or repair service is not covered under reverse charge system. If contract has been made for these services then it will fall under reverse charge system.