09 November 2013
My Clint has taken service tax registration 2012-13. He has applied for the Voluntary Compliance Encouragement Scheme (VCES).He was providing services to us from 2010 but he was not charging service tax to us. Now he is asking the service tax portion on his bills for 2010-11 and 2011-12. Weather I have to pay the service tax for 2010-11 and 2011-12. Please guide me in this regard.
09 November 2013
You are not legally bound to pay service tax.
However in case you are able to take CENVAT Credit for the same, i will suggest to pay service tax to him against a Invoice/ documents and take CENVAT Credit for the same.
CAclubindia
