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Service tax rcm applicability

Hsekar Kumar (Accountant) (50 Points)

29 December 2013

Sir / Madam,

My query regarding Service Tax RCM Charge. and the question is "If in Supply of Manpower the Provider(Partnership Firm) pay the tax @ 12.36, so, any tax liability under RCM to Receiver (Pvt Ltd).?

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3 Replies

VIKASH KUMAR JAIN (Audit Executive) (711 Points)
Replied 29 December 2013

Yes liability of Service Receiver and Service Provider is independent to each other in case of RCM.So Service receiver is still required to pay it's part of liability.

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VIKASH KUMAR JAIN (Audit Executive) (711 Points)
Replied 29 December 2013

However Service provider can adjust its excess payment against future liability by following requisite rules.

Mir Irshad Ali (Partner) (192 Points)
Replied 29 December 2013

As per Partial Reverse Charge S. Tax Notfn., the service provider in this case is liable to pay service tax only on 25% of taxable value. The service provider in this case is liable to pay service tax only on 75% of taxable value. Since the service provider has paid excess S.Tax the same can be adjusted against subsequent liability subject to the time limit for such adjustments.