Non compliance of reverse charge provision

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This query is : Resolved

ashish alagh (Querist)

10 March 2014 what if the service receiver liable to pay service tax under reverse charge, in case of manpower supply( i.e. 75 %,) does not pay service tax and service provider charges entire 100% tax.
Thanx in advance.

AJITHKUMAR M

AJITHKUMAR M (Expert)

10 March 2014 Dear friend,

The service receiver can not absolve from the statutory liability on account of the fact that the service provider has paid 100% service tax.

ashish alagh

ashish alagh (Querist)

10 March 2014 what are the legal repercussions, if you may please cite.

Ganeshbabu K

Ganeshbabu K (Expert)

10 March 2014 Legal liability to pay tax 75% os that of service receiver
.
Under reversecharge service provider and service receiver liability is independent
.
Department may ask u to pay ur part of seevice tax ..ur liability cannot come to end assuming ur service provider paid
.
Service provider should charge only his part of liability which is 25%
.
However u can say that there is no revenue loss to dept and it is debatable...
.
So now onwards payservicetax to service provider only to the extent he is eligible
.

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