Service tax payment details

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 June 2013 In case service tax included in bill.

The service Receiver paid service tax amount in 25% on department or not.

Ganeshbabu K

Ganeshbabu K (Expert)

08 June 2013 If reverse charge applicable to you billing by service provider should be as below

1)Service provider should charge only his part of service tax

2)Service receiver to pay service tax of his part by GAR-7 challan

3)Service receiver liable for only his part and not entire amount, even if service provider does not charge his portion of service tax.

4)A statutory liability cannot be shifted by mutual agreement. If statutory liability is of service receiver, he alone is liable..

Ganeshbabu K

Ganeshbabu K (Expert)

08 June 2013 But in your case you are telling that service provider claimed full service tax in his bill so it is recomended to ask him one more bill as given above..

he is not liable to claim full servicetax and he should claim only st amount payable by him,..and not with standing all this your's is the primary responsibility to discharge service tax as a service receiver

but if you already paid to service provider full service tax dont pay again obtain a certificate and copy of service tax paid challans by service provider as a proof that he paid full st collected from you..

So that we can convince department that there is no revenue loss in this transaction

But this practice should be avoided and he should discharge his part of service tax to avoid department harassments

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