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Service tax of a recovery ageny

vishak (accounts) (488 Points)

20 July 2014

one of my assesse is a coustomer of bajaj. he get commission from bajaj of his recovery service. he also collect servicetax and file service tax return. his turn over is above ten lakh. But now the bajaj told they collect servicetax. how can that possible the service recover can collect the provider servicetax ?

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4 Replies

CA Anoop Tiwari (Practicing Chartered Accountant) (135 Points)
Replied 20 July 2014

As per proposed amendment in budget in service tax under reverse charge/partial reverse charge

added your service as follows:

service provided by recovery agent to a banking co./financial institution/nbfc ,

the service receiver will be liable to pay service tax. this amnedment will be applicable from11/07/2014 unless otherwise specified.

vishak (accounts) (488 Points)
Replied 20 July 2014

Oh but is it compulsory to pay full service tax the service recover. So but my Clint has allredy registration because his total turn over is above 10 lakhs. Can we can cell our service tax registration ?

vishak (accounts) (488 Points)
Replied 20 July 2014

Oh but is it compulsory that the service reciver will pay the full service tax means entire 12.36 % ? . but my Clint has allredy registration because his total turn over is above 10 lakhs. Can we canell our service tax registration ?

CA Vivek Goyal (Practising CA) (148 Points)
Replied 21 July 2014

You can file NIL returns for the periods otherwise you can surrender your ST-2 if you are not covered under any other service . We will advise you not to surrender it but to file NIL returns of Service Tax.