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Service Tax Liability (Payer or Payee)?

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This query is : Resolved

CMA. Subhash Kumar Jha (Querist)

23 December 2008 Sir,

We are paying professional consultancy fees which will exceed Rs. 8 lacs in current financial year.

We are paying these payments after deducting TDS under section 194J. But, the consultants are not charging any service tax on its bill.

What is our liability ?

Kindly reply ASAP.

Thanks,

Subhash Kumar Jha

C A GROUP COACHING

C A GROUP COACHING (Expert)

23 December 2008 MR Jha,
1) The service tax floor limits for this year are 10 Lkhs.

2) It is the service provider who is responsible to collect & pay the service tax.

3) as mentioned by u that they are not charging than they may either not falling under the service tax net, Else in either case it is their responsibility.

4) Till you are deducting TDS you are also right under the I T law.

You require any further clarification
CHANDRAKANT AMBANI
BOMBAY
9819408963 / 9821240674
preetiambani@yahoo.com

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