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Service tax - rcm - transport by road

Nimish (B.com) (53 Points)

22 June 2017

we(AOP) have received service from logistics company(firm),do service tax under RCM is applicable, please let us known urgently

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4 Replies

Vineet Aggarwal (Accounts Officer) (316 Points)
Replied 22 June 2017

yes RCM will be applicable under Service Tax act as well as GST act

in Service tax Act you have to pay 30% tax of 15% of taxable value

in GST Act you have to pay 5% tax of taxable value

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Nimish (B.com) (53 Points)
Replied 22 June 2017

thanks,can you proivde circular or notifications stating that service received by AOP and service provider Firm falls under RCM for transport by road.

Vineet Aggarwal (Accounts Officer) (316 Points)
Replied 22 June 2017

Just check the service tax notification 26/2012 google it..

Nimish (B.com) (53 Points)
Replied 22 June 2017

have checked out notification as below under sr no 7 it states 25% whereas as your revert 30% but it does states anything about RCM - service received by AOP and service provider Firm falls under RCM for transport by road.

Sl. No.	Descripttion of taxable service	Percent- age	Conditions
(1)	(2)	(3)	(4)
1	Services in relation to financial leasing including hire purchase	10	Nil.
2	Transport of goods by rail	30	Nil.
3	Transport of passengers, with or without accompanied belongings by rail	30	Nil.
4	Bundled service by way of supply of food or any other article of human consumption or any drink, in a premises ( including hotel, convention center, club, pandal, shamiana or any other place, specially arranged for organizing a function) together with renting of such premises	70	(i) CENVAT credit on any goods classifiable under Chapters 1 to 22 of the Central Excise Tariff Act, 1985 (5 of 1986) used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.
5	Transport of passengers by air, with or without accompanied belongings	40	CENVAT credit on inputs and capital goods, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.
6	Renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes.	60	Same as above.
7	Services of goods transport agency in relation to transportation of goods.	25	CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.