30 May 2012
My contractor has done one Lumpsum Turnkey contract. During the contract execution there was no service tax on the works i e prior to 1.6.2007. After the applicability of service tax w e f 1.6.2007, my contractor has remitted service tax to the government but not raised the same in the tax invoice. After the contract is over, there was a prolonging dispute on this service tax which was not claimed by the contractor. He is showing proof of service tax challan for proof of service tax payment. The contractor is prefering the service tax claim now. Please clarify in the absence of tax invoice, based on the proof of service tax remittance, can we reimburse the service tax. If we, as a service taker, denied the claim, what would be the consequence?
CAclubindia
