CA girl (Article Trainee-CA Final) 13 May 2013
What if the Service Provider is not registered under Service Tax in case of reverse charge mechanism. How will the service receiver show his share of service tax paid against the service provider while filing the returns in the respective forms? Are there any specific codes for this case?
Vijay Shankar (Regional Accounts Manager) 14 May 2013
Service receiver has to pay service tax under reverse charge eventhough service provdier is not registered under service tax. But service receiver has to pay only his portion of tax payable.
You have to amend your registration to include these service also. while filing the retun you have to show these payments under that head only under service receiver.For example if you are receiving security services from an firm, you have to amend your registration to include security services also.
There are 2 columnes in excel utility in paid services sheet. one for 100% reverse charge second one for partial reverse charge. you have to select appropriate one.
DS Sajwan (MBA) 26 September 2013
Dear Shankar Ji
Please give your valuable expert comments on this matter.
A contractor (Pvt. Ltd. Co.) working with us as Civil Work since September’2011, but they Registered for Service Tax vide ST-1 on December’2012 & Date of ST-2 is January’2013, now they are demanding Service Tax 12.36% to us since September’2011 (from 1st Bill)
1. Are we liable to pay service tax 12.36% with date of work starting or 1st Bill ? (although ST-1 & ST-2 date is latter) ?
2. From the date of ST-1 or ST-2, or Bill generated after ST-1 or ST-2 ?
3. How could we know & how can they prove that they are deposited Service Tax against our Project, because they are working with various Builders ?
Vijay Shankar (Regional Accounts Manager) 30 September 2013
Dear Sajwan Ji,
Sorry for not replying in time.
As per sction 69, Service tax cannot be paid/collected unless we register ourselves with Service tax dept. So your contractor cannot ask you to pay service tax for the period before the registration date. Simple logic is that he will not be able to pay it to ST dept.
After registration he has to collect ST through invoice and pay it to ST dept. Your responsibilty is to check whether he has charged ST properly on the invoice. Payment of ST is his reponsibilty.
Hope this will clear your doubt.
CA Vivek Goyal (Practising CA) 30 September 2013
Dear Shankar Ji, I am having another query related to this matter. In another case service provider is having registration from beginning and he was not charging ST from receiver but actually he should charge. Now he want to disclose his tax liability under VCES,2013 by paying all dues. Whether he can charge ST on all old invoices issued by him from very beginning and service receiver is liable to pay or not?
DS Sajwan (MBA) 03 October 2013
Dear Shankar Ji,
Thanks for reply, but contractor raised the Bill in current year & charged ST from the date of work start with us (not from ST Registration date).
Now will we have to pay ST as per Contractor (from the date of work start) or from the date of ST Registration ?
Rahul Patel (s) 19 February 2017
I am providing manpower service only to company. Some consultants says that you are required for registration and some says you are not require. Can you guide me am i require to obtain registration if my turnover exceeds 10 lakh, but whole turnover is taxable to service receiver.