TaxTMI 
TaxTMI 
Dear Sir,
RCM is applicable on Partnership Firm
RCM applicable on Partnership Firm
27 May 2016 
6 Replies 
11950 Views Asked by
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Reverse charge mechanism applies to services received by business entities; excess payments from interpretation issues require refund, not adjustment.
Reverse charge applies when specified taxable services are received and statutory conditions are met; recipients who are business entities incur the service tax liability even if not a body corporate. Characterisation of the recipient as a business entity is determinative. Excess payments made due to interpretation, taxability, valuation or exemption issues cannot be self-adjusted under the rules and instead require filing a refund claim with the tax authority; other excess payments may be adjusted in subsequent returns with disclosure. (AI Summary)
Reverse charge applies when specified taxable services are received and statutory conditions are met; recipients who are business entities incur the service tax liability even if not a body corporate. Characterisation of the recipient as a business entity is determinative. Excess payments made due to interpretation, taxability, valuation or exemption issues cannot be self-adjusted under the rules and instead require filing a refund claim with the tax authority; other excess payments may be adjusted in subsequent returns with disclosure. (AI Summary)