Please provide your suggestion in following case regarding whether RCM will be applicable:
One of party is issuing only Labour bill to us for making of furniture and installing roof tops. The status of that party is Individual and the status of my organization is Pvt. Ltd. However, the bill for the material is issued by other party.
So whether we will be covered under RCM and have to pay service tax on the portion of labour bill???
If material bill is issued separately, then it is out of works contract and only labour part is concerned. Labour part is now "contract for installation of roof top" and not covered under supply of man power and no RCM is applicable.
CAclubindia
