Reverse charge please reply urgent

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 June 2013 hi all,
A party raised a bill for security charges where he didnt mention that 75% is payable by the service receiver & raised the bill for along with 100% st now the auditor is saying that we need to now pay 75% of service tax to govt & the party will take the credit of that 75% paid by them to govt .

another issue is that a party didnt charge service tax in the bill now the auditor is saying that since reverse charge is applicable in the bill we have to pay 75% to govt.

please reply

Rupesh Jain

Rupesh Jain (Expert)
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26 June 2013 REVERSE CHARGE APPLICABLE ON SERVICE RECEIVER IS COMPANY (PVT & LTD )

IN SERVICE PROVIDER IS PVT & LTD CO.
THEN CHARGE FULL SERVICE TAX
NOTHING HAS NOT DEPOSIT BY RECEIVER

PLS CHECK IF YOU ARE CO. THEN REVERSE CHARGED DEPOSITE BY YOU IF SERVICE PROVIDER IS NOT A CO.

Ganeshbabu K

Ganeshbabu K (Expert)
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26 June 2013 1)Yes..you need to pay service tax on bills which are covered under reversecharge ..service provider not under any obligation to specify that you need to pay balance service tax amount.

Solution for 100% ax paid by you but auditor ask you have to pay,

2)Legal liability is of service receiver.

3)That liability does not disappear even assuming that the service provider has paid the service tax.

4)The department can insist on payment of service tax from you

5)[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].

6)So reply to your auditor above and obtain a certificate from service provider that amount of servicetax paid by you was deposited correctly to government with a proof if st challans

Thanks & regards
Ganesh babu k

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