TaxTMI 
TaxTMI 
Whteher the reverse charge mechanism applicable w.e.f 01-07-2012 would also apply to "Repairs & Maintainance activity" / "AMC" / "Commercial or Industrial Construction" due to wider scope of Works Contract.
Coverage of Works Contract
27 Jul 2012 
2 Replies 
1065 Views Asked by
Reverse charge mechanism applies to repairs, AMC and construction under works contracts; tax due on declared service portion.
The reverse charge mechanism effective from 01-07-2012 applies to repairs and maintenance, AMC, and commercial or industrial construction when these fall within the expanded scope of a works contract, and tax under the reverse charge is to be paid on fifty percent of the service portion as prescribed by the cited notification. (AI Summary)
The reverse charge mechanism effective from 01-07-2012 applies to repairs and maintenance, AMC, and commercial or industrial construction when these fall within the expanded scope of a works contract, and tax under the reverse charge is to be paid on fifty percent of the service portion as prescribed by the cited notification. (AI Summary)