Service tax
This query is : Resolved
25 March 2013
Does private company has to pay service tax on service received from a consulting engineer? The gross receipts of that consulting engineer is below 10 lacs so he is not entitled to pay it, but does private co. pay service tax on the service received by that consulting engineer
26 March 2013
Dear Akash,
The services of engineer are not covered under Reverse Charge mechanism so you are not entitled to pay any amount of servic etax for the services received from him.
Secondly, for sake of your knowledge only i would like to tell you that teh liability of service provider and service receiver are absolutely exclusive from each other.There might be some case in which service provider is not liable to charge service tax but i don't means that the liability of service receiver is also not there. The Rs. 10lacs limit provided by board is for the service providers only there is no such limit for the service receiver.
So service receiver if falling under reverse charge have to pay the service tax at any cost.
Thanks & Regds
CA JAYANT BOTHRA
M: 9873-626-020
The services of engineer are not covered under Reverse Charge mechanism so you are not entitled to pay any amount of servic etax for the services received from him.
Secondly, for sake of your knowledge only i would like to tell you that teh liability of service provider and service receiver are absolutely exclusive from each other.There might be some case in which service provider is not liable to charge service tax but i don't means that the liability of service receiver is also not there. The Rs. 10lacs limit provided by board is for the service providers only there is no such limit for the service receiver.
So service receiver if falling under reverse charge have to pay the service tax at any cost.
Thanks & Regds
CA JAYANT BOTHRA
M: 9873-626-020
26 March 2013
Thank you sir..
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