St liability under reverse charge by sr discharged by sp

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 September 2015 HI,
My client(Pvt co ) has availed Security services from an agency ( Sole prop)
from the year 2012 since then the agency has been raising the bill on my company for entire service tax portion and we have been paying him the amount.
The security agency has been remitting the amount towards government .
Recently during Excise audit , Superintend of Excise had pointed out that 75 % of service tax portion was to be paid by service reciever under reverse charge //
Now my query is Will the company be treated as in Default for not paying 75% portion or can i argue that Service liability for 12.36% was paid by service Provider
Kindly advice

Harshal Fifadra

Harshal Fifadra (Expert)
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14 September 2015 Your company will be treated in default since your company is specifically liable to pay tax under section 68(2) . The primary liability is of your company. Discharge of the liability by the service provider is a mistake of service provider.

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