03 December 2014
Hi, Mr A provides rent a cab service of Rs 50,000/- for the month of Nov 14 to XYZ Pvt Ltd. Mr A is not registered under service tax. How much will be the RCM liability on part of XYZ Pvt Ltd in this case??
04 December 2014
& what if he did not?? I guess company's liability is restricted to 50% irrespective of the fact that service provider is registered or not
Irrespective of fact that service provider register under service tax or not . . Service receiver liability restricted to 50% of service tax remittance(w.e.f.01.10.2014) . . . **Service receiver means business entity registered as body corporate. [pvt ltd,ltd companies and LLP]
Generally no cenvat available on this payment . . . And company needs to register for service tax under reversecharge, if they already have registration need to ammend the same w.r.t. receipt of services covered in reversecharge
04 December 2014
Correct reply by Ganeshbabu. Service receiver is liable to pay service tax. The question asked here is "How much liability under RCM will be on XYZ Ltd?"
As correctly answered by Ganeshbabu it will be 50%.
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