Who will be responsible after billing of above10 lakhs limits without service tax . Service providor or service receiver from a consultant. deducting tds @ 10%. kindly clarify.
Thanks
K.N.MISHRA (ACCOUNTANT) (31 Points)
24 December 2015Who will be responsible after billing of above10 lakhs limits without service tax . Service providor or service receiver from a consultant. deducting tds @ 10%. kindly clarify.
Thanks
Stranger
(.)
(5526 Points)
Replied 24 December 2015
Service Provider will be responsible, provided 'Reverse Charge Mechanism' is not applicable else the Service Receiver as per Rule-2(1)(d) of The Service Tax Rules, 1994. Moreover, TDS should be decucted on the value of taxable services excluding the service tax, if separately shown in the bill.
Hope ur doubt is cleared now..
Ravi Kumar Somani
(Indirect Taxes Specialization)
(3893 Points)
Replied 24 December 2015
Agree with the above view. Liability is always on service provider unless a transaction is covered under reverse charge.
Harsh
(working)
(85 Points)
Replied 25 December 2015
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