If labor charges metion separate invoice service tax will attract under RCM

[Swapneswar muduli]

Dear Sir,

If a service provider repair our machine also we purchase the material also.

But the service provider mentioned the purchase item then mention the labor charges in same invoice.

So in this above case service tax will attract under RCM or Not ?

Regards

Swapneswar Muduli

AI Summary

Service tax under RCM applies if labor and material charges are listed separately, per Notification No. 30/12-ST. Separate invoicing advised. A query was raised regarding whether service tax under the Reverse Charge Mechanism (RCM) applies when labor charges and material purchases are listed separately on the same invoice. The discussion concluded that if the service is covered under Notification No. 30/12-ST and the service receiver is a business entity, service tax applies. It was advised that labor and material charges should be separately listed to avoid classification as a works contract service. Participants agreed that separate invoicing for labor and materials is preferable to ensure correct tax treatment.