liability of service tax payment

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Sneha (Querist)
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04 March 2009 Dear Haresh,
In such a case billing will be consider as inclusive of Service Tax and Service tax is payable as below:
Billing Amount/(100+ST rate)*ST
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I think the liability to pay the service tax arises only when the supplier is registered under service tax. Secondly, it should be mentioned on the bill as " inclusive of service tax".

Pl correct if I am wrong.

CA LOKESH KASAT, FCA, M.Com

CA LOKESH KASAT, FCA, M.Com (Expert)
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04 March 2009 Dear Sneha,
You are correct, but while answering it was assumed that Service Provider is registered, bcoz if he not registered than the question of Service Tax doesnt arise.
And as per the Rules issued by service tax in this regard, if Service Tax is not charged sepratley bill wil be considered as inclusive of Service Tax.

CA LOKESH KASAT, FCA, M.Com

CA LOKESH KASAT, FCA, M.Com (Expert)
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Ankit Dawar

Ankit Dawar (Expert)
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07 March 2009 See I am unaware about the background.....

but I would also like to highlight that even if a service provider is not registered under service tax laws and have collected the service tax then also he is liable to pay service tax to the central government. . .Sec 73A(1)& (2) of the Finance Act, 1994

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