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
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
(Expert)
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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