Reverse charge mechanism
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
30 June 2016
Hii,
Where Service provider is a Works Contractor and Service receiver is Non business entity (Trust), Reverse charge mechanism is attracted since it is works contact. 50% is paid by service provider and same is recovered from service receiver. However Service receiver being a Non business entity is not required to pay the balance 50% of tax to the government. In such case who is the person liable to pay the balance 50% of service tax.
Where Service provider is a Works Contractor and Service receiver is Non business entity (Trust), Reverse charge mechanism is attracted since it is works contact. 50% is paid by service provider and same is recovered from service receiver. However Service receiver being a Non business entity is not required to pay the balance 50% of tax to the government. In such case who is the person liable to pay the balance 50% of service tax.
Rupesh Jain
(Expert)
30 June 2016
work RCM will applicable if your business entity, otherwise not applicable.
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