Client being a service recipient do not want to pay service tax. According to the client (Govt. Body/One of the Ministry of Govt. of India), they are funded by Grants-in-Aid and as such service tax is not applicable.
Now, I wanted to know whether there is any law/rule/provisions in respect of Service Tax that allows non-applicability of service tax if service recipient has source of funds from Grants-in-Aid and thus not willing to pay service tax.
In case of above situation, what course of action should be taken?
14 December 2008
Such exemptions are available to selective services. Kindly provide details of service provided by you. Also explore the possibility of including the ST tax in the value itself and pay the ST by reverse working without showing the same in the invoice raised.
The nature/category of service is "Fashion Designer Services". As regards to your opinion,"Also explore the possibility of including the ST tax in the value itself and pay the ST by reverse working without showing the same in the invoice raised"- Kindly provide me a dummy example.
CAclubindia
