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Bharat Airan (Querist)
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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)
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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)
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19 April 2013 Is Service Recipient again have to pay his tax liability to the government.

CA Vikas Acharya

CA Vikas Acharya (Expert)
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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)
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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)
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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

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