I am working as Manager Finance in a PSU. We have various works awarded to various contrators. One of the repair and maintenance contract has been awarded to a party as inclusive of service tax. The party is not registered under Service Tax. The Services are taxable under Service Tax. Our Service tax payment are centraly made at Head quarters at New Delhi and we are a unit at a different location.
1.The problem is if we make the deduction of Service Tax from the bill of the party how would we be able to take credit ?
2. What would be the status of the party?