Service tax payment

Save Share

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 August 2013 My client receive service of 1800000/- but service provider does not mention service tax on invoice.
For same they not pay amount of service tax.

Please suggest,
My client have any obligation?
Any difficulties will have in future?

CA UMESH DULAL

CA UMESH DULAL (Expert)

13 August 2013 if service tax is not seperately mentioned in the invoice, then total amount (i.e. total of invoice amount) will be treated as inclusive of service tax.
i.e. your invoice will be treated as

service charge 16,01,994
Service Tax
(including E. & SHE) 1,98,006

total amount 18,00,000

You insists your client to raise addition bill for balance amount

Querist : Anonymous

Querist : Anonymous (Querist)

13 August 2013 Sir, My client argued that If service provider does not mention anything about service tax than how i calculate on the basis of reverse charges.
There was no bases for claims of credit for that much amount.
My client has any obligation for the intimation to service provider or department?
If any future obligation please let me know?

CA UMESH DULAL

CA UMESH DULAL (Expert)

13 August 2013 It the rule which say when service tax is not separately shown, it is considered as inclusive of service tax.

If his contention is true, everybody will issue invoice without mentioning the service tax. The same rule is applied in VAT as well.(by the way, are you consultant or your client)

Service tax is self assessment so you need not intimate the department. if his case is opened, he have to pay the tax on above amount.

CA Suresh Jain

CA Suresh Jain (Expert)

15 August 2013 Dear queriest You have mentioned that service is such where RCM is applicable. In such a case your client need to pay his part of service tax whether service provider has mentioned tax separately or not.

The value of service will be bill amount - service tax chargeable by the service provider.

If the service provider is registered under service tax your client can take the credit of service tax as per the formula mention by Mr. Umesh.

It is better, to avoid future confusions, to force the service provider to mention service tax amount separately.

disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now