RCM Service Tax liability ??

[abbas mukhi]

Dear Experts,

We are Body Corporate and receiving following services from non body corporates.

1.Supplying and Spreading of DDT Powders and Burnt Oil in various locations inside our premises and nearby areas.

2.Development and Maintainance of Plantation including supply and watering of trees.

3.Transportation and supply of loose water in Tanker to various location in our premises.

4.Civil work at sewage treatment plant.

Under what category above services will fall and our service tax liability as a service receiver.

Thanks...

[Ganeshan Kalyani]

Point wise reply is given below:

1. The activity mentioned by you a pest control activity. The service provider is supposed to charge service tax on invoice.

2. If the activity of developing and maintaining plantation is upon service provider and if the manpower employed by him in the factory works under his supervision and control then in this case the service tax should be charged by service provider.

3. The responsibility of service taxin case of transportation with factory is upon the service provider.

4. This activity is works contract service, square lyrics covered under reverse charge mechanism. The service tax should be paid at 50% on 40% of value of service by service provider and equal liability by service receiver.

Thanks.

[Ganeshan Kalyani]

I apologise, the words 'square lyrics' have been typed mistakenly in my reply dated 23.03.2016. Please read as 'squarely'. Sorry.

[abbas mukhi]

Thank you Ganeshan sir....

AI Summary

Reverse charge mechanism applies to works contract service at sewage treatment plant, creating shared service tax liability. Pest control, plantation development and watering, and water transportation services received by the body corporate are chargeable to service tax by the service providers where they supervise and control their manpower; civil work at the sewage treatment plant is a works contract service subject to the reverse charge mechanism, with tax accounted by the provider on a specified fraction of value and an equal liability on the service receiver.