Service tax- reverse charge

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This query is : Resolved

nitin (Querist)

04 July 2013 if manpower supplier charges in his bill service tax 12.36% insted of 3.09%. what is receivers liability. should receiver pay service tax 9.27% or what.

Ganeshbabu K

Ganeshbabu K (Expert)

04 July 2013 1)Legal liability is of service receiver.

2)That liability does not disappear even assuming that the service provider has paid the service tax.

3)The department can insist on payment of service tax from you.

Thanks & regards
Ganesh babu k

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nitin

nitin (Querist)

04 July 2013 suppose service tax paid rs 100 (as a liability) by service receiver. can this amt take as cenvat credit in excise.

Ganeshbabu K

Ganeshbabu K (Expert)

04 July 2013 You mean to ask what if you have paid entire 12.36% paid by you only..

That is what i said in above reply

1)Legal liability is of service receiver.

2) That liability does not disappear even assuming that the service provider has paid the service tax.

3)The department can insist on payment of service tax from you

4)[In respect of past, may be you can get away by claiming that it is only procedural mistake and no revenue loss. However, for future, please do not do it].

5)if you have not made payment to party just ask him to submit revised bill or pay only 25% of service tax...

it is not a matter of cenvat..what ever be the case you paid to govt. or part you will get cenvat of service tax paid

here issue is if department insists you to pay 75% of service received to govt..what you do...?

So go as above suggested..

Thanks & regards
Ganesh babu k

Ganeshbabu K

Ganeshbabu K (Expert)

04 July 2013
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.

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