Special Festive Offer: 15% OFF Across All CCI Pro Membership Plans. Subscribe Now!

Works contract

Save Share

This query is : Resolved

S SAMPATH (Querist)
Follow

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?

VIVEK BARANWAL

VIVEK BARANWAL (Expert)
Follow

31 May 2012 Please check your agreement,
Normally Agreement has the clause that if any new tax has been levied by Govt than it shall be paid on proof.

If no any clause in agreement than you may denied on the basis of same.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now