Treatment of service tax

This query is : Resolved

AJAY SHARMA (Querist)
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24 November 2012 a company is providing rent a cab services but from july 2012 a notification has come into force that service provider will not collect service tax.tax will be deposited by service receiver.
so kindly clear the concept of treatment whether is it input tax or output tax.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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24 November 2012 If the service provider is an individual, HUF or firm then reverse charge is applicable and the liability is shifted onto the service recipient.

Accordingly, the service provider will NOT charge service tax in his invoice. The service tax shall be deposited by the service recipient.

However, in this case the service provider is a company and accordingly the liability is on the company only.

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