Ashok Katarmal (Manager Accounts) (75 Points)
03 June 2015We are partner ship firm (service provider) and Service Receiver is also Partner ship firm...
We have provided machinery to him on monthly rental basis, following are queries..
Q1 - Is there applicable Reverse Charge Mechanisam
Q2 - What % do we charge
Please help.. as We have to raise bill.....
S.Vix
(ARTICLED CLERK)
(60 Points)
Replied 03 June 2015
Ashok Katarmal
(Manager Accounts)
(75 Points)
Replied 03 June 2015
OK,
What will be the Rate to be charged.. is it 3.09%
Ashok Katarmal
(Manager Accounts)
(75 Points)
Replied 03 June 2015
Thanks for your valuable replies.. Mr. Vix,Nirajji,Rakeshji...
Puneet Bhatti
(Auditor)
(23 Points)
Replied 03 June 2015
Ashok Katarmal
(Manager Accounts)
(75 Points)
Replied 03 June 2015
Thanks A Lot...Bhattiji,
Now It is very clear.... Great way to remember of RCM ...BBC and HIPA..
Again Thanks..
Puneet Bhatti
(Auditor)
(23 Points)
Replied 03 June 2015
CA. Ankit Chandrakar
(chandrakar.ankit@gmail.com)
(1082 Points)
Replied 05 June 2015
Reverse Charge is applicable only in case of certian specified services are provided by specified persons, AND RENTING OF MACHINERY DOES NOT FALL IN THAT CATEGORY.
So, no reverse charge will be applicable in your case. The rate to be charged will be 14% for services provided from 01.06.15.
However, if you are billing for the period before 01.06.15, you should charge 12.36%.
Ashok Katarmal
(Manager Accounts)
(75 Points)
Replied 05 June 2015
Thank you Ankitji,
Yes, We have raised bill with full rate of Service Tax i.e. 14% as Bill submission date pertains to june-15.
Expecting your kind suport...if required in fututre.
Warm Regards and Great Day Ahead..
PF & ESI Course - Labour Code 2019 Along with Examples and Case Studies
CAclubindia
