Service tax liablity

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 September 2012 If a service used by 5 companies like placement services and bill paid by a single co. and that comapny issue debit notes on cost basis to other companies in some fixed proportion,the co. who paid the bill avail full input service tax credit and in debit notes no service tax is charged from other companies. Whether the above method legally valid. and whether there is need to charge service tax on debit invoices

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Amol S Joglekar

Amol S Joglekar (Expert)
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15 September 2012 Accounting practice differs from company to company. In the method you follow, the company who has paid the BILL in toto, is carrying the risk of providing SERVICE to these 4 companies... say OFFICE SERVICE or ADMN SERVICE or Business Auxillary Service as is called in old service tax regime.

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