Reverse charge

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karthik s (Querist)
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09 July 2013 Under manpower supply service, service provider had charged 12.36% on whole amount.
My question is that is the Company still liable under reverse charge since Company paid the whole service tax amount to service provider.

Ganeshbabu K

Ganeshbabu K (Expert)
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09 July 2013 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(service receiver)

4)[In respect of past, may be you can get away by claiming that it is only procedural mistake and no revenue loss. However, for future, please do not do it].

Thanks & regards
Ganesh babu k

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