Service tax under reverse charge mechanism

This query is : Resolved

P.C. Joshi (Querist)
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14 October 2015 A company has hired motor cars/coaches for its visitor from a rent a car company. The service provider has charged service tax @5.6%(40% of the actual rate).

Now the query is whether the srvice receiver is liable to pay again 5.6% of the total bill amount OR if he can pay the bill amount( which includes 5.6% ST) to the service provider.

Can anyone please explain the above.

Thanks

P.C. Joshi

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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15 October 2015 No RCM applicable if service provider is a company. Pay the bill amount to the service provider.

P.C. Joshi

P.C. Joshi (Querist)
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15 October 2015 Sir,
In the above query what will be the answer if the service provider is not a company?

Secondly, whether a partnership firm is considered a company or not.

Thanks

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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15 October 2015 Partnership firm is not a company. If service provider is not company then RCM will be applicable.