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Reverse charge under work contract

Queries 392 views 2 replies

service provider is provinding material and service. Example  Providing material Frontlit Flex with VAT charged on it and fixing and Pasting charges with service tax charged on it.whether it is covered under work contract and Service receiver have to service tax at 50% under RCM or not??

 

 

Replies (2)

Following are the points needs to be considered.

1. Whether Service provider is same entitiy for supply of material and service. if different entity works contract will not applicable.

2. How much the contract value. The works contract is applicable depends upon and WCT to be deducted accordingly.

3. Is he raising inv seperately for supply and service or giving break-up in his bill. 

4. Is the provider is Individual, Firm, LLP etc needs to be considered for RCM.

5. It depends upon whether he is registered or unregistered we need to pay service tax under RCM 50% or 100% as applicable.

Pls correct me if anything wrong.

Ans to the following points:-

1) Same entity is raising the invoice for material and Labor in same bill..

2) break up for material and labor provided in the bill

3) it is firm providing services to the company and registered under service tax

4) Value will be about 40K...

 


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