Rcm

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 December 2014 We are a proprietary co. having commission income. We hire car at the time of business tours. The person, who is also a proprietor with the business of renting car does not charge Service tax on bills to us. But he put a note in his bills that service tax should be paid by service receiver. Should RCM is applicable in this case. Whether we take input credit if we pay ST under RCM on same.

PAWAN KUMAR

PAWAN KUMAR (Expert)
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30 December 2014 Dear Sir,
As per my view, you are liable for service tax under reverse charge mechanism as a service receiver. Further you can claim of such service tax after payment.