Reverse charge mechnism- service tax

Save Share

This query is : Resolved

gauri gupta (Querist)
Follow

26 August 2014 Our Company has received Manpower and Work Contract Services from another Company in February 2014. For Which Service provider Co. issued invoices and charge service tax @12.36% avoiding Reverse Charge Mechanism.Our Co. did'nt notice it at that time and paid service tax @12.36%. Now we have noticed it that this is contravention of Reverse Charge Mechanism.
Now please tell me any remedy by which we can correct it.

Please help me as this is very urgent.

Thanks in advance

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

26 August 2014 make application to the concerned service tax cell stating that your company will act as per the reverse charge mechnism PROSPECTIVELY
The concerned officer will give effect to the retrospetive transaction accordingly.

Message likes : 1 times

gauri gupta

gauri gupta (Querist)
Follow

26 August 2014 Ok thnks for ur reply.
Cud u plz elaborate this point as I am working First time in service tax.

Annu Agarwal

Annu Agarwal (Expert)
Follow

27 August 2014 Also you can quote the recent caselaw of Hon’ble Mumbai CESTAT, in the case of Umasons Auto Compo Pvt. Ltd. Vs. Commissioner of Central Excise & Customs, Aurangabad [2014 - T IOL – 126 – CESTAT - MUM] where it was held that once the amount of Service Tax is accepted by the Revenue from the provider of GTA service, it cannot be demanded again from the recipient of the GTA service.
The same apllies to ur case also.

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now