Works contract
Indrakumar KS (Sr.Accounts /Finance Executive) (72 Points)
06 May 2017Indrakumar KS (Sr.Accounts /Finance Executive) (72 Points)
06 May 2017
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177896 Points)
Replied 07 May 2017
If Service Receiver is corporate body, then RCM is applicable.
Indrakumar KS
(Sr.Accounts /Finance Executive)
(72 Points)
Replied 08 May 2017
Dear Sir,
We are an Corporate Body. Then RCM may applicable. But he is charging service Charges only of Rs. 23000/- . & Vat Portion Will be 140000/- So whether we have to consider only 23000/- for works contract RCM. Or Is it we have to consider Both Incl Supply for Works contract RCM.
Regards
Indrakumar KS
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177896 Points)
Replied 08 May 2017
According to Rule 2A of Service Tax (Determination of Value) Rules, 2006, subject to the provisions of section 67, the value of service portion in the execution of a works contract, referred to in clause (h) of section 66E of the Act, shall be determined in the following manner, namely:-
(a) Regular Scheme [Rule 2A(i)]
(b) Standard Deduction Scheme [Rule 2A(ii)]
So, if the service portion is seperately determined, ST @ full charge or 15% with cess will be appliicable under Rule 2A(i)(here on Rs. 23,000/-)
Your liability under RCM would be 50% of the ST chargeable.
Indrakumar KS
(Sr.Accounts /Finance Executive)
(72 Points)
Replied 09 May 2017
Dear Sir
Thank You so much sir
Indrakumar KS
(Sr.Accounts /Finance Executive)
(72 Points)
Replied 09 May 2017
Dear Sir
Thank You so much sir