Hi
Can some one help me with service tax reverse charge on works contract
as i have read RCM is appliable only the party's has charged VAT then receipient is laible for 50% and the provider 50%
is this correct ???
4 Replies
Rakib
(Accountant)
(48 Points)
Replied 04 July 2013
If non-corporate provides service to any corporate this rule is applicable. Service tax is charged on the service portion of the bill amount.
shruthi.v.ramu
(Senior Associate @ Grant Thronton US)
(72 Points)
Replied 04 July 2013
VAT must be charged under works contract for RCM is it mandatory
else RCM is not appilable to the receiver ???
Nirav Worah
(CHARTERED ACCOUNTANT)
(396 Points)
Replied 05 July 2013
VAT must be applicable on goods used in the execution of work to be classified as works contract.
shruthi.v.ramu
(Senior Associate @ Grant Thronton US)
(72 Points)
Replied 05 July 2013
It need not be charged
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