RCM applicable on Partnership Firm, Service Tax

[UMESH KUMAR]

Dear Sir,

RCM is applicable on Partnership Firm

Posts / Replies

[Ganeshan Kalyani]

Sir, your question is not clear. Please elaborate. Thanks.

[UMESH KUMAR]

Dear Sir,

1. Reverse Charge is applicable on Partnership Firm.

2. If by mistake we have made excess payment in Previous financial year March,2016 , Can we adjusted our current quarter lablities.

[Ganeshan Kalyani]

Sir, the list of services covered under reverse charge mechanism is given in Notification no. 30/2012-ST. If those services are provided and the conditions prescribed the notification is fulfilled then reverse charge will apply.

Second, excess payment made in the month of March 2016, can be adjusted in the following months. The details of excess payment made should have been shown in the ST-3 filed for half yearly ending March, 2016. Thanks.

[KASTURI SETHI]

In RCM Service receiver should be business entity registered as body corporate.

¨ “Business entity” means any person ordinarily carrying out any activity relating to industry, commerce or any other business or profession. Thus, Government, charitable organisation is not ‘business entity’.

¨ Body Corporate – Company, LLP, Cooperative Society is Body Corporate – Firm, HUF, Trust is not ‘Body Corporate’ [Society registered under Societies Act is legally not ‘body corporate’].

Service Provider may be individual, Prop., Partnership etc.

[MUKUND THAKKAR]

you mean to say that by mistake you have deposit under RCM which has not applicalbe to your firm. you may applied for refund if service tax is not applicalbe to you.

[KASTURI SETHI]

As per Rule 6 (4B) of Service Tax Rules, 1994, if excess payment of ST is on account of interpretation of law, taxability, valuation or applicability of any exemption notification, then self-adjustment is not allowed. In that situation, refund claim has to be filed with the jurisdictional Asstt. Commissioner/Deputy Commissioner.