Dear Sirs,
We are a proprietorship company providing services to a corporate. The corporate has contracted us to provide bus services for their employees, We have sub-contracted the activity to another vendor. Now our vendor is not registered with service tax authority, and his monthly billing to us is 3.5 lakh. We are using his services from last five months.
Are we liable for any service tax payment as service receivers.
Kindly clarify.
Regards
Vithal
Service Tax is liable to be paid as a service receiver only when the recipient is a body corporate.
Given that yours is a sole proprietorship (please revert if not so, since it is specified as "proprietorship company"), you are not liable to pay Service Tax as a service receiver, on the services received from the other vendor.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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