Reverse charge

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 July 2013 A company receives security services from a firm and the said firm is registered with service tax and the invoice contains ST regn number as well. The firm charges ST and the same is paid by the Company.

Does this transaction fall under reverse charge even though the Company pays service tax to the vendor who has valid registration?

Ganeshbabu K

Ganeshbabu K (Expert)
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05 July 2013 Yes..reversecharge applicable definetely

1)Legal liability is of service receiver.

2)That liability does not disappear even assuming that the service provider has paid the service tax.

3)The department can insist on payment of service tax from you

4)as and when reverse charge applicable for you you should pay only his part to him and balance to be paid directly to government other wise you may face some problems from department

Thanks & regards
Ganesh babu k

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