Rcm

This query is : Resolved

Bharat Airan (Querist)
Follow

18 April 2013 If service provider collect 100% service tax than Service Recipient discharge from his liability under Full or Partial Reverse Charge Mechanism ?

CA Vikas Acharya

CA Vikas Acharya (Expert)
Follow

19 April 2013 no the recipient has his own individual and separate liability in eyes of law.
a person can't transfer his legal liability to another person for paying tax.

the department is free to serve notice in name of recipient.

Bharat Airan

Bharat Airan (Querist)
Follow

19 April 2013 Is Service Recipient again have to pay his tax liability to the government.

CA Vikas Acharya

CA Vikas Acharya (Expert)
Follow

19 April 2013 this is his 1st liability, it is the mistake of provider that he deposited extra.
recipient has to pay the tax, no remedy to the receiver on the mistake of provider.

Bharat Airan

Bharat Airan (Querist)
Follow

19 April 2013 it means recipient has to pay amount after deducting service tax amount if it is charge in bill to the service provider.

CA Vikas Acharya

CA Vikas Acharya (Expert)
Follow

19 April 2013 it means the bill is wrongly prepared.
Likewise you won't accept a bill in which service tax is charged 15% instead of 12.36% , similar will be the case that why should you accept a bill in which a wrong tax is charged.

though there are few disputes in case of indirect taxation over shifting of tax liability.

you can refer a very recent case by SC, over transfer of liability.

https://www.supremecourtcases.com/index2.php?option=com_content&itemid=99999999&do_pdf=1&id=24390

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

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

venkanna setty

shubham agrawal

R.Prashanth

Nilesh Matekar

Jayesh Pipalwa

Subscribe Now

Rcm

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA