Reverse charge mechanism

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sadhana (Querist)
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20 October 2016 In case of a service on which reverse charge is applicable, if service receiver has already paid the total amount of service tax to the service receiver as invoice is cum service tax, is still service receiver is liable to pay service tax to govt as it would lead to increase in costing to service recipient.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 October 2016 No need if service provider has remitted the full service tax, as per case decided by courts.

sadhana

sadhana (Querist)
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20 October 2016 sir can u plzz quote one of any such case.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 October 2016 M/S Lilason Breweries Vs CCE Bhopal.
CCE Vs Om tea company.

sadhana

sadhana (Querist)
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20 October 2016 sir its a decision given in 2009 and rcm becomes applicable 2012 afterwards, would it be applicable in current scenario too.

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CA Sandeep Kumar

CA Sandeep Kumar (Expert)
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20 October 2016 Dear Sadhana,

Under RCM, liability to deposit of service tax is on Service receiver & it can't be shifted in any manner. Service receiver has to pay the service tax to the govt.
Further if service receiver paid the amount to service provider than he should recover the said amount from service provider & deposit to service tax. If the same is not possible than you can request to the govt officer to consider the same as govt can't recover the service tax from both person.

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 October 2016 Yes the decision is applicable in the current scenario also. The decision in case of Om tea company relates to year 2012.

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