Service tax liability of service receiver
This query is : Resolved
03 July 2012
Sir
I am working in PSU where some vehicle has been taken on hire basis, maximum vehicle owner's have turnover is less than 10 lacs so service tax as not paybale by them . whether we are liable for payment of 40% of service tax as a service receiver's liability.
Thanks in Advance
I am working in PSU where some vehicle has been taken on hire basis, maximum vehicle owner's have turnover is less than 10 lacs so service tax as not paybale by them . whether we are liable for payment of 40% of service tax as a service receiver's liability.
Thanks in Advance
03 July 2012
yes you are liable to pay service tax.
03 July 2012
Under reverse charge mechanism, it says 40% of the value will be taxable at the hands of the service receiver. After paying in separate challan, the same can be considered as cenvat document for availing cenvat credit w.e.f 01.07.2012.
Even if the service provider is below 10 lacs, the liability lies with the SR.
Even if the service provider is below 10 lacs, the liability lies with the SR.
03 July 2012
The exemption of Rs. 10 lakhs available to the service provider is NOT available (not passed on) to the service recipient where the service recipient is liable to pay service tax under reverse charge.
Accordingly, you will have to pay service tax.
Accordingly, you will have to pay service tax.
03 July 2012
Note no 10.1.3 of Guidance Note issued by CBEC dated 20th june 2012-
The liability of the service provider and service recipient are different and independent of each other. Thus in case the service provider is availing exemption owing to turnover being less than Rs 10 lakhs, he shall not be obliged to pay any tax. However, the service recipient shall have to pay service tax which he is obliged to pay under the partial reverse charge mechanism.
Note:- if the Service Provider is individual, Hindu Undivided Family AOP,or partnership firm then only you are liable for 40% of service tax otherwise not.
The liability of the service provider and service recipient are different and independent of each other. Thus in case the service provider is availing exemption owing to turnover being less than Rs 10 lakhs, he shall not be obliged to pay any tax. However, the service recipient shall have to pay service tax which he is obliged to pay under the partial reverse charge mechanism.
Note:- if the Service Provider is individual, Hindu Undivided Family AOP,or partnership firm then only you are liable for 40% of service tax otherwise not.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Off Market debit and credit transaction
- Itr 1 processing
- Showing Gift from relative in ITR for this year
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- Short Term Capital gain on shares bought and sold after 2018 onwards
- ITR selection for salaries and capital gain less than L
- ITR returnFY25-26
- ITR 2 Short Term gain & Long term gain
- Share accounting-->fifo - capital gain - period as per fifo?
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- ITR 1: Details for showing Exempt Income
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
