Reverse charge

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This query is : Resolved

MANISH MISHRA (Querist)

24 February 2016 the amount of contract pri ce is inclusive of all taxes. the service category is manpower supply where 100% reverse charge apply. now what will b the liability of corporate because provider is not liable to pay service tax. assume that contract price is 30000 inclusive of taxes

Ganeshbabu K

Ganeshbabu K (Expert)

24 February 2016 Don't pay service tax to service provider if he is not eligible to charge in his invoice

MANISH MISHRA

MANISH MISHRA (Querist)

25 February 2016 in my case service receiver is liable to pay st in reverse charge.

Ganeshbabu K

Ganeshbabu K (Expert)

25 February 2016 In such case service provider cannot charge service tax in his invoice,

Responsibility isLIABILITY on service receiver(if RCM applicable) TO DISCHARGE SERVICETAX

MANISH MISHRA

MANISH MISHRA (Querist)

25 February 2016 but contract price is inclusive of taxes . if company vl pay st then this is additional cost to the company.

Ganeshbabu K

Ganeshbabu K (Expert)

26 February 2016 1)Service receiver cannot escape from ST liability by your contractual obligations and at the same time service provider cannot demand service tax where it is not permissible as per RCM rules.
2)So you may make payment treating 30000 as inclusive of service tax and pay amount excluding service tax,if your service provider not agrees for this you either accept additional cost or change service provider

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