Reverse charge

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 December 2014 I am a Security Service Company liable to pay 100% Service Tax. However, my client is paying 75% Tax and giving me only 25% of the amount. My client fails to understand that h e is not liable to pay the tax amount and i being a company is liable to pay the tax.

How can i convince my client that what he is doing is wrong?
If my client still continues to do so, what tax implications can arise on me ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

29 December 2014 Show the provisions of reverse charge mechanism to your client. If your client still continues it you may get a demand notice from service tax Dept.

Querist : Anonymous

Querist : Anonymous (Querist)

29 December 2014 Can i show the challans of payment from the client to prove that there is no intent to evade Service Tax from our end?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

29 December 2014 Yes you can show that.

Rupesh Jain

Rupesh Jain (Expert)

29 December 2014 you see the RCM provision . and tell we are PVT LTD Company and company responsible to pay full service tax. and you can giving in writing to them for in future if regarding service tax if any liability arise then you are liable.

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