06 September 2014
Under RCM, if the service provider has no service tax registration number, whether there is a need to deduct service tax on part of service recepient?
Service tax is not like TDS which is to be deducted from the bill of service provider while making payment.
Rate of RCM is applied on bill amount by service recipient and directly paid to the govt. by service recipient. And service provider receives full amount of bill (less TDS if applicable) if service provider is not covered under service tax (i.e. his turnover of services is below exemption limit)
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