TaxTMI 
TaxTMI 
TaxTMI 
Sir, we (Body corporate) receive monthly maintenance charges bills(Fixed) from our vendors (Individuals, AOP) towards our offices on lease. The descriptions on the bills mentions as 'Montly Building Maint. charges', 'Monthly office maint. charges' and 'Common Area maintenance charges' etc. They are not charging any tax on the amount. I have doubt, are these types of bills covered under RCM or not under category works contract.? Please suggest.
Reverse Charge Mechanism
Ranbir Singh
Reverse charge mechanism may apply to maintenance service payments to individual vendors; consult the governing notification for applicability. Query whether monthly building, office or common area maintenance charges paid to individual or association-of-person vendors without tax charged attract reverse charge liability under service tax law, or whether they fall within works contract; respondent advises consulting the applicable notification governing reverse charge treatment. (AI Summary)
