Service tax

This query is : Resolved 

04 December 2009 xyz a patnership firm has been duly depositing the service tax charged from its client (A MNC ) but the client intially kept the service tax payment pending and released the bill for the services provided but now refuses to release the old outstanding service tax payment (which is huge amount).

what remedy does the firm xyz has for recovering the service tax payment already made to the government by the firm?

The MNC is giving the plea that service tax is not liable on the services being offered by firm xyz to them but they have regularly been paying service tax to the same firm for other services provided under adifferent service provider agreement.

pls. give ur expert views.

05 December 2009 This matter is covered under the contract act. If the agreement and or contract contain such clause for service tax then xyz can proceed for recovery of tax.

The bilateral agreement holds the key.

There is no remedy in the service tax provisions for such disputes. At the most xyz can apply for refund of proportionate amount of tax paid on the un-realised part.


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