Collection of service tax dues

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How to recover the Service Tax dues

Dear all seniors,

1. Our Company made an agreement with xyz company (herein called as 1st party) for renting immovable property on 7th june 2012 for a monthly rent of Rs.......... plus service tax and paying rent with service tax as agreed.

2. M/s. ABC company (herein called as 2nd party) was taken some part of the property from the 1st party with an agreement the rent can be shared and the rent will be paid to the owner.

3. Now we paid Service Tax on behalf of the both the parties to the department as per the law. The 1st party has reimbursed our service tax dues fully. But the 2nd party was rejected our plea saying that they will pay service tax dues from Dec-15 onwards only because they can not take any cenvat for their older period. We have issued rental invoice/s with service tax liability to both the parties.

4. Now the question was how we have to collect our service tax dues from the 2nd party which was paid to the department on behalf of the 2nd party.

Please advise on this at the earliest. Advance thanks for all.

Murthy  

Replies (4)

It is a agreement which bound to the party that what second party will pay.

In your case, if a agreement exist with second party and it is shown that second party will pay serive tax then take the view of Agreement.

Thanks a lot sir.

Regards & have a nice day.

Murthy

You can sue the party under contract act laws and if you are not willing to , then consider the rent inclusive of tax and revise the return also.

 


Regards

Karanjit Singh | +91-7503588224 

Thank you sir.

Regards & have a nice day.

Murthy


CCI Pro

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