Service tax under rcm

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 March 2016 THERE IS PARTNERSHIP FIRM PROVIDING SERVICE OF CONSTRUCTION OF 33/11 KV SUBSTATION AND LAYING OF CABLE BETWEEN SUBSTATION TO A BUSINESS ENTITY.

WHETHER THIS SERVICE IS TAXABLE AND WHETHER IT COMES UNDER RCM OF WORK CONTRACT SERVICE?

Guest

Guest (Expert)

05 March 2016 When the materials are supplied by the business entity and the firm does a pure construction activity using its labour, this will be considered as construction service and hence not covered under RCM. But when both supply materials and services are coming under the firm contract then this is considered as a Works contract service and RCM of 50% will be applicable