I have a query regarding service tax payable under reverse charge mechanism.
We have a contract with a cab service provider (Proprietary concern) for employees pick and drop facility effective Sep-2012. The service provider has raised the monthly bills for the period Sep-12 to Aug-13 with service tax charged in the bill @ 4.94%. From Sep-13 service provider stopped charging service tax in his bills. But we started paying service tax @ 4.94 under reverse charge effective Sep-13.
Now my questions are: 1. Since we have paid the entire amount including service tax charged in bill to service provider till Aug-13, do we need to pay any amount under reverse charge?
2. Since service provider has not charged service tax in his bill on and after Sep-13 and we paid the the tax @ 4.94 under reverse charge, is it correct?
22 May 2014
1. RST became applicable from 1-7-2012 and If you are a Company/Private Ltd Company then you are required to pay RST. In the given case you have paid to the service provider which should have been paid to the Govt. It would be better if you can take pay the amount now with interest to the department.
2. You need not pay any service tax to the service provider and you should be paying to the department only. Which you are already doing. Thus there is no issue as far as the current period is concerned.
CAclubindia
