Joint charge-negative list approach

This query is : Resolved

vignesh srinivasan (Querist)
Follow

14 February 2013 Kindly clarrify

1.Under joint charge mechanism the service recepient is liable to pay his share of Service tax, but when he pays the entire tax to the service provider and ask him to pay can the service provider agree

2.Is it mandatory or optional to adopt joint charge mechanism

krunal

krunal (Expert)
Follow

14 February 2013 IN RCM the liability of payment of ST is independant i.e SR & SP has to discharge there portion of ST independently.

Firstly SR & SP has to dischar their respective ST liability afterwards SR can raise debir note to SP and can recovert the excess ST paid to SP

As it is independent liability to pay ST is mendatory to pay ST jointly