20 September 2012
We are Public Limited Listed Company . We Paid Service Tax to Labour Contractor for the services of Supplying Human Labour but Issue is That we are claiming Input on Paid Service Tax but Labour Contractor did not pay Service Tax to the Government.so we are about to file half yearly Service Tax Return .What we should do being a public Limited Listed Company?
20 September 2012
Dear Sir, In the present case provision of service is an important aspect. Before 1.07.2012: In case of period prior to 01.07.2012 you don't need to worry, if you have made payment of invoice and service tax to your service provider(manpower supplying contractor) you can claim input credit on the same. It is service provider's liability to deposit tax after collection. CEnvat at you end wouldn't be denied.
After 01.07.2012: After 01.07.2012, reverse charges applies, therefore you will be liable to deposit tax on the service and then claim credit on the basis of tax payment challan & invoice.
In your half yearly return you may show it as credit.
CAclubindia
