Onus of service tax liability

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Ankur (Querist)
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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

Amol S Joglekar

Amol S Joglekar (Expert)
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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.

Ankur

Ankur (Querist)
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28 November 2012 Thanks Amol for the clarification.

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