Reverse Charge Mechanism

[Ranbir Singh]

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.

[YAGAY andSUN]

Please check the Notification No. 30/2012-ST in this regard.

AI Summary

Body corporate challenges Reverse Charge Mechanism on maintenance charges for leased offices; seeks clarity under Notification No. 30/2012-ST. A body corporate is questioning whether monthly maintenance charges billed by vendors, who are individuals or associations of persons, for leased office spaces are subject to the Reverse Charge Mechanism (RCM) under the service tax category of works contracts. The bills include descriptions like 'Monthly Building Maintenance charges' and do not include any tax. A respondent suggests reviewing Notification No. 30/2012-ST for guidance on the applicability of RCM to these charges.