Meyyappan (Manager Accounts) (93 Points)
20 June 2011We have a caterere who is providing food & other catering services in our office. He has not charged any service tax in his bill!! kindly clarify me whether service tax is liable(on how many % of the total amount) & whether we are liable if he is not charging that??
Dipjyoti Majumdar
(CA in service & CS. dipmaj@ rediffmail.com )
(3468 Points)
Replied 20 June 2011
look, if the service provider does not charge you service tax, you are not at fault.
it may be that the caterer's turnover is less than 10 lakhs. also, in this kind of business, reverse charge mechanism does not work.
CAclubindia
