Service tax on works contracts

[Chetan Papnai]

Sir I want to know about service tax in work contract in R C M act . If service receiver is registered under society act who was responsible for pay tax & which percentage

[KASTURI SETHI]

Any organisation/institution registered under Society Act is neither business entity nor body corporate,. So RCM is not applicable in Works Contact Service and Service Provider is required to pay ST as per erstwhile ST law.

AI Summary

Reverse charge mechanism not applicable where recipient is a society; service provider must pay service tax.
Reverse Charge Mechanism does not apply to works contract services where the recipient is an organisation registered under the Societies Registration Act; the service provider remains liable to pay service tax under the erstwhile service tax law for supplies characterised as Works Contract Service.