Whether rcm applicable ?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 June 2014 Hello
If an assesses provided painting service of old building as per work contract given by company then that service whether covered under RCM. If yes, then how much service tax liability arise on service receiver (Company).

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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11 June 2014 painiting service is not covered by rcm and service provider has to pay it.

Ganeshbabu K

Ganeshbabu K (Expert)
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11 June 2014 RCM applicable as it is work contract service
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1)50% service tax is payable by service provider and 50% by service receiver.

2)The service receiver liable for 50% even if service provider does not charge service tax.
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3)Tax should be paid under service tax registration number of service receiver and included in his return as he is liable to pay service tax.

4)Service tax is payable by service receiver when actual payment is made to service provider and not on receipt of Invoice from service provider. However, if payment is not made to service provider within 6 months, service tax is anyway payable. Interest is also payable.
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Note: RCM not applicable if service provider is company

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