Works contract

If Service Receiver is corporate body, then RCM is applicable.

Dear Sir,

We are an Corporate Body. Then RCM may applicable. But he is charging service Charges only of Rs. 23000/- . & Vat Portion Will be 140000/- So whether we have to consider only 23000/- for works contract RCM. Or Is it we have to consider Both Incl Supply for Works contract RCM.

Regards

Indrakumar KS 

According to Rule 2A of Service Tax (Determination of Value) Rules, 2006, subject to the provisions of section 67, the value of service portion in the execution of a works contract, referred to in clause (h) of section 66E of the Act, shall be determined in the following manner, namely:-

(a) Regular Scheme [Rule 2A(i)]

(b) Standard Deduction Scheme [Rule 2A(ii)]

So, if the service portion is seperately determined, ST @ full charge or 15% with cess will be appliicable under Rule 2A(i)(here on Rs. 23,000/-)

Your liability under RCM would be 50% of the ST chargeable.

Dear Sir

Thank You so much sir

Dear Sir

Thank You so much sir

Most welcome