Respected Seniors
I have a query related service tax. Kindly help.
Brief History: We being a Limited Company Received a Bill of Installation of Batteries for Labour charges only. Bill dates back to Feb 2016. Contractor is a partnership firm and has not charged service tax on the bill.
query: whether service tax be applicable under Reverse Charge and if yes how much?
Kindly help.
Debate on Reverse Charge Mechanism Applicability for Labor Charges in Battery Installation; Classification Key to Tax Implications. A limited company received a bill for labor charges related to battery installation from a partnership firm, which did not include service tax. The query was whether service tax applies under the Reverse Charge Mechanism (RCM). Responses varied: some experts suggested that if the service is classified as manpower supply, RCM applies at 100%, while others argued that installation does not constitute manpower supply, thus RCM is not applicable. It was noted that the invoice description is crucial, and if only labor charges are billed, it should be categorized correctly to avoid future issues. (AI Summary)
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