03 January 2008
Is receiver of services will pay the tax.........?
For example: My co. receives counseltig services from a co. The amount is Rs.1.25.000 & service tax @ 12.36=15,450 so the total is Rs.1,40,450 My question is how much i have to pay to the co. who is providing services and how much to the Govt.
You need not have to deposit any amount to the Govt. with regard to service tax liability. Only in four occasions the receipient of service shall be entitled for despoit of service tax: (1) services received from a person outside india u/s 66A (2) goods transport agency (3) business auxilliary servies of distribution of mutual funds (4) sponsorship service As the above service doesnot fall under any of the services mentioned above, despoit of service tax liability by the receipient does not arise.
12 January 2008
The onus of discharging liability on account of service tax is of the provider except for specified services
The service stated by you is not being one of them the service tax is to be paid by the provider in your case
You shall only pay to the service provider as per the bill raised by him and can take the credit of service tax ( after payment and due credit to the provider) for dishcaring any liability that you may have as a manufacturer or a service provider.
If you are neither a service provider nor a manufacturer then it should be booked under the head of expense to which the expense belongs
CAclubindia
