Liability

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 June 2013 Dear Sir,
Under RCM system, whether only the corporate bodies are liable to pay service tax on the receipt of service
or
other constitution like partnership and proprietorship are also liable under RCM.

Please clarify.
Thanks in advance.

CA Sourabh Agarwal

CA Sourabh Agarwal (Expert)
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17 June 2013 It depends on category of service provided. Pls specify.

Querist : Anonymous

Querist : Anonymous (Querist)

17 June 2013 suppose a proprietorship firm received the service of a work contractor.

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CA Sourabh Agarwal

CA Sourabh Agarwal (Expert)
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17 June 2013 If an individual, firm, HUF, AOP provides works contract services to COMPANY registered in India, recipient is liable to pay tax on 50% of value of service.
Remaining is covered under normal mechanism.

Querist : Anonymous

Querist : Anonymous (Querist)

19 June 2013 if the recipient is a proprietorship firm, then RCM applicable or not?

CA Sourabh Agarwal

CA Sourabh Agarwal (Expert)
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19 June 2013 Individual means proprietorship firm.