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Liability of service tax

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This query is : Resolved

pratik bhojwani (Querist)

16 December 2013 if a service provider provides services of works contract to pvt ltd co. costing of rs 8 lakhs and issue the invoice of same then whether the pvt ltd co is liable to pay the service tax on reverse charge basis.
b)what if the service provider is unregisterd
c) what if service provider does not charge service tax on bill

AJITHKUMAR M

AJITHKUMAR M (Expert)

16 December 2013 Dear friend,

This may be a contentious issue. However, as per the clarification issued by the Board, the liability of the service provider and service recipient are different and independent of each other. Thus in case the service provider is availing exemption owing to turnover being less than Rs 10 lakhs, he shall not be obliged to pay any tax. However, the service recipient shall have to pay service tax which he is obliged to pay under the partial reverse charge mechanism.

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