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Excesa service tax charged under rcm

498 views 2 replies

Hajra

Consultant

46 Points Posted on 29 May 2014

in case if vendor is not aware about service tax under reverse charge mechanism and has charged us excess, is the company still liable to pay its portion of service tax? Is there some notification that if the govt has received the full amount of service tax it isnt required to pay rcm separately? can we suggest the vendors to revise the bill in case he has charged full serv tax? in case if vendor is not ready to revise or not ready to disclose what amount has been deposited to the govt, what is the remedy?

Replies (2)

ASHISH

ACCOUNT ASST

74 Points Posted on 29 May 2014

liability to pay service tax under RCM is independent for both service provider and receiver. if srevice provider charges wrongly full service tax . The service receiver still liable to pay service tax under RCM for his portion like SP 25- SR-75 %(Manpower service) SP-50 SR-50% (Works Contract)

If it is possible for revised invoice this is the best way to demand revised invoice

Hajra

Consultant

46 Points Posted on 30 May 2014

Ok. Thanks ashish. But I remember reading sumwhere that once govt has received its full amount of service tax then the service receiver is relieved from its liability but still not sure. Thanks for your reply.