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 applies to certain building repair works, with liability split under works contract rules.
Applicability of service tax on replacement of tin sheets depends on classification as Works Contract Service (materials supplied by contractor) versus pure repair and maintenance. For works contract, a 70% service portion is subject to service tax and Reverse Charge Mechanism may apply where the provider is an individual/HUF/AOP/partnership and the recipient is a registered body corporate, producing shared liability; if recipient is not a body corporate, the contractor bears the tax. Pure labour repair places full liability on the contractor. Territorial location of provider can affect RCM.