Onus of service tax liability
This query is : Resolved
28 November 2012
There is Mr. A(Individual) who provides professional services of helping corporates to get approvals in process of construction. He has entered into an contract with Company Z and contract does not mention anything on service tax.
1. Who is liable to pay service tax on such fees. Is it Mr. A or company Z(under reverse mechanism)
2. If Mr. A does not charge the service tax, will company Z still be liable to pay to government
3. IF Mr. A charges the service tax, can company Z refuse to pay since it is not part of the contract.
Your early reply would be appreciated
1. Who is liable to pay service tax on such fees. Is it Mr. A or company Z(under reverse mechanism)
2. If Mr. A does not charge the service tax, will company Z still be liable to pay to government
3. IF Mr. A charges the service tax, can company Z refuse to pay since it is not part of the contract.
Your early reply would be appreciated
Amol S Joglekar
(Expert)
28 November 2012
01.Mr A is liable to pay service tax on this.
02. Reverse Charge is applicable only in cases referred to in the notification. 30/2012.
03. Company can always go by the contract. Mr A has to shoulder the responsibility of paying service tax.
02. Reverse Charge is applicable only in cases referred to in the notification. 30/2012.
03. Company can always go by the contract. Mr A has to shoulder the responsibility of paying service tax.
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