Service tax paid on catering contract
This query is : Resolved
04 May 2012
FACT OF THE CASE
(1) As per contract company is liable to pay bill amount with service tax to the catering contractor
(2) But bill raised by the contractor does not include service tax amount.
(3) But afterwards during service tax audit at contractor, Auditor told that contractor had to pay tax on the bill raised by such contractor.
(4) Catering contractor has also paid the same service tax and proof for the same also available.
Now my question is that company can liable to pay such amount of service tax which is paid by such contractor if such contractor take its service tax registration after the contract period.
(1) As per contract company is liable to pay bill amount with service tax to the catering contractor
(2) But bill raised by the contractor does not include service tax amount.
(3) But afterwards during service tax audit at contractor, Auditor told that contractor had to pay tax on the bill raised by such contractor.
(4) Catering contractor has also paid the same service tax and proof for the same also available.
Now my question is that company can liable to pay such amount of service tax which is paid by such contractor if such contractor take its service tax registration after the contract period.
04 May 2012
This will depend upon the negotiations that took place between the caterer and the company. (Many quotes carefully include the words taxes extra as applicable) If no such evidence on the part of caterer.... then it will fall under business risk and the caterer should bear the same whether or not he/she took the number before or after.
04 May 2012
Dear sir I have already drafted that contract clause between company and contractor already include clause that company will be liable to pay Service Tax but at the time of raising the invoice by contractor he has not included Service Tax amount in his Invoice.
Now he is giving separate invoice for service tax amount for the period before he has registered himself under service tax Act i.e. period before taking service tax registration.
So my question is that can company made liable to pay service tax for the period before contractor get himself registered with Service Tax Authorities.
Now he is giving separate invoice for service tax amount for the period before he has registered himself under service tax Act i.e. period before taking service tax registration.
So my question is that can company made liable to pay service tax for the period before contractor get himself registered with Service Tax Authorities.
04 May 2012
No. Absolutely not. With effect from 01/04/2011, service tax has become bill wise. So no need to make any payment towards service tax which is not separately shown in the bill; initially.
05 May 2012
I want to brought following two points to your notice
(1) the period for which I am talking about is 01.04.2011 to 31.03.12
(2) What will be the position of clause in contract between company and contractor. means can conractor take legal action against company as now contractor giving all proof of pmt of service tax to govt and also ready to give invoice for the amount of service tax.
(3) this bill wise service tax pmt if from 01.04.12???????
(1) the period for which I am talking about is 01.04.2011 to 31.03.12
(2) What will be the position of clause in contract between company and contractor. means can conractor take legal action against company as now contractor giving all proof of pmt of service tax to govt and also ready to give invoice for the amount of service tax.
(3) this bill wise service tax pmt if from 01.04.12???????
05 May 2012
Better consult a good LAWYER for the interpretation of the CLAUSE drafted by you. The position of service tax has been clarified. Now you need to ensure the other end i.e. clause in your agreement.
Message likes :
1 times
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
- GSTR-1A How to update Invoice
- Excess salary payment.
- Capital gain from sale of house property
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- TDS on Purchase of Immovable Property by NRI from NRI
- Stamp Paper for partnership firm change new income tax 2025
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- FORM 26A APPLICABILITY
- Value of property in capital gain
- SFT Cash Deposit in Current Account
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
