Liatility of service provider and receiver service

This query is : Resolved

GAURAV GOPAL BADWE (Querist)
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01 October 2012 Dear All,
We would like to ask that what is the responsibility of Service Receiver in case of Service Tax with respect to payment of Service tax to Government by Service Provider.

IF Service Provider does not Pay Service Tax to Government, then will it be a liability of Service Receiver.
If Service Provider does not Pay Service Tax to Government,then will government will deny service receivers service tax credit even though he has paid full amount with service tax to service provider.

Regards,

Gaurav G Badwe

Amol S Joglekar

Amol S Joglekar (Expert)
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01 October 2012 The liability is cast on to the heads of service PROVIDER except in the cases of REVERSE CHARGE. follow the link https://www.servicetax.gov.in/notifications/notfns-2012/st30-2012.htm

CA Nikhil Jhanwar

CA Nikhil Jhanwar (Expert)
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02 October 2012 Only in those cases where service receiver is liable to pay tax, the service has to ensure the timely payment of tax.

In other cases the service receiver is not concerned whether service provider haspaid service tax or not once the SR has already paid the ST to SP. You can take credit of the same on the basis of Invoice. The defualt is on part of SP

Amol S Joglekar

Amol S Joglekar (Expert)
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02 October 2012 However, in some cases of REFUND, Service Tax department is asking for proof of payment by service provider; from service receiver.

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