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Regarding Work Contract under reverse charge mechanism.

Service Tax - Started By: - Swapneswar muduli - Dated:- 8-2-2016 Last Replied Date:- 12-2-2016 - Dear Sir,1) If we purchase a machinery parts and this price is including the installation charges also. and the material provider person comes our factory and install this parts in our machine.In the above case service tax will attract under reverse charge mechanism or not for service recipient ?2) some service provider repairs our split AC in our office and with material in that case service tax wil .....

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otification and as such service tax is liable to be paid partially by service provider and service recipient in the proportion specified in the reverse charge notification.2) Repair would include both material and labour component and therefore service is applicable under reverse charge. - Reply By KASTURI SETHI - The Reply = Sh.Ganeshan Kalyani Ji, With due honour, I totally differ on this issue. I know this is an hypothetical query and even then it is very interesting and informative query. Po .....

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th can be bifurcated easily i.e. Sale and service. Service Tax cannot be charged on sale of any part of the machine. Here deduction is allowed in terms of erstwhile Notification No.12/2003-ST dated 20.6.2003 (Now rescinded).Though Notification stands rescinded but value of the machine is excluded, it being sale. In other words, it is a case of 'pure labour' and hence cannot be classified under the category of Works Contract Service .Hence not eligible for abatement and RCM. 2. This is re .....

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