RCM applicable on Partnership Firm

[UMESH KUMAR]

Dear Sir,

RCM is applicable on Partnership Firm

AI Summary

Reverse Charge Mechanism applies to body corporates, not partnerships; excess service tax adjustments require proper ST-3 reporting. A discussion on the applicability of Reverse Charge Mechanism (RCM) to partnership firms highlights several points. A user queries if excess service tax payments made in March 2016 can be adjusted in the current quarter. Respondents clarify that RCM applies if services fall under Notification no. 30/2012-ST and conditions are met. Excess payments can be adjusted if reported in the ST-3 return. However, if excess payment is due to misinterpretation, a refund must be claimed. It is noted that RCM applies to business entities registered as body corporates, not including partnerships, HUFs, or trusts.