10 April 2014
ABC Exports Pvt. Ltd. paid to Ideal Group regarding staff recruitment as follows: Bill Amount Rs. 100/- + ST Rs.12.36 Total Rs.112.36/-
As Per above situation service tax is applicable under reverse charge mechanism in the hands of receiver (ABC) i.e. 75% of 12.36% is 9.27% under categories of man power supply.
My query is service provider is already collect the 12.36% (100%) service tax amount from service receiver. So in this case service receiver still need to pay service tax amount? If yes then what amount??
11 April 2014
Legal liability is of service receiver. That liability does not disappear even assuming that the service provider has paid the service tax. The department can insist on payment of service tax from you
[In respect of past, may be you can get away by claiming that it is only procedural mistake and no revenue loss. However, for future, please do not do it].
CAclubindia
