Clarification on applicability of s tax on retainership

We have engaged a full time consultant on a monthly retainer fee of Rs. 75,000/- pm.

The total consultancy charges per annum works out to Rs. 9,00,000/-.

The consultant is not registered for service tax.

In the bill submitted to us, he has not charged any Service Tax.

What is the liability to the company under this circumstance.

Will the company be liable to pay service tax to the government on obtaining such service.

 

Please clarify on this matter.

Thanking you in anticipation.

 

Replies (3)
The company is not liable to pay any service tax under reverse charge mechanism as consultancy service is not included under reverse charge mechanism

Hi

 

This is not a case of reverse charge..hence your company does not have any liability of service tax

 

Regards

No liability of service tax

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