Payment of service tax

This query is : Resolved

Ridhi Jindal (Querist)
Follow

27 December 2012 Please tell me whether in case service receiver is a company and service provider is an individual..liability to pay service tax vests upon Company or Individual..??

CA NIKHIL OZA

CA NIKHIL OZA (Expert)
Follow

28 December 2012 General rule is that, service provider only has to pay service tax... But in Some cases the service receiver has to pay i.e. Reverse charge ..From 1/07/2012 a new concept of part reverse charge is been introduce where in part(specified in rules) of the tax is paid by service provider and another part by the receiver.e.g. in case of Works contractor, catering service etc...so the liability to pay s.tax would depend on what type of service is been provided..

Message likes : 1 times

Ridhi Jindal

Ridhi Jindal (Querist)
Follow

28 December 2012 Thanks Nikhil..
In this case Building is provided on rent by Service Provider...so kindly suggest me the situation in case of Rental Service.

Kaushik Vinod

Kaushik Vinod (Expert)
Follow

28 December 2012 No Reverse Charge on Rental Services so 100% has to be paid by the Service Provider.
See Notification No. 30/2012-ST dated 20-06-2012.
Catering Service is not covered under Reverse Charge abatement is available up to 60%.

Thanks

Message likes : 1 times

Ridhi Jindal

Ridhi Jindal (Querist)
Follow

29 December 2012 Thanks Sir for your valuable guidance.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now