Service Tax Expert
780 Points
Joined April 2009
Hello Amisha,
In case of reverse charge, service receiver has to pay service tax.
It is not the liability of service provider to pay tax thereon.
So, while calculating aggregate value, services provided under RCM should be ignored because SP is not liable to pay tax thereon.
However if it the case of Partial Reverse Charge like in case of Works Contract i.e. 50-50, the portion on which SP is liable to pay tax should be considered ignoring the portion on which he is not liable to pay tax.