S.T. on Repairs & Maint. Building

[RAJENDRA KHOMNE]

Sir,

Good Morning,

We have changed our buildings Tin sheet from contractor. Is it comes in RCM & how many portion of Service Tax we need to pay and can we take credit of paid Service Tax on Challan? or If we paid full service tax and can we take credit? pl guide.

Thanks,

R. M. Khomne

AI Summary

Reverse Charge Mechanism and Service Tax: Clarifying Tax Liability for Building Repair and Maintenance with Contractors. A discussion on the applicability of Reverse Charge Mechanism (RCM) and service tax for building repair and maintenance involving a contractor. The main query revolves around whether the service tax can be credited and the extent of tax liability under RCM. Responses clarify that RCM applies based on the nature of the service and the relationship between the service provider and recipient. If the service involves a works contract with materials supplied, partial RCM applies; otherwise, the contractor bears full tax liability. The discussion concludes with agreement on the legal interpretation provided.