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Not charging service tax in bill by service provider
We are a ltd company. our service provider (for repair and renovation of office building) is an individual. He is not charging service tax in bill raised by him though the single bill for entire work itself is in excess of Rs 10 Lac. in such case what is the way out for us. As this is covered under RCM we are paying Service Tax on 50% value;works contract. But can dept hold us liable for not paying service tax .our problem is that until and unless service tax is charged in bill how can we pay;except our liability under RCM. please help...
Replies (4)
I think if the service provider is not charging service tax separately the amount raised in invoice will be considered inclusive of ST.
Before appointing the service provider, isn't it a practice for a limited company to reward such large chunk of work to a recognised vendor.
Of this is comea under work contract tax then 50% service tax mist be paid by service provider and 50% by service receiver... unser RCM method..... u have should not work backward to calculate service tax... u just pay service tax on 50% of value of services... ... of 9ts os normal service which is not cover under RCM then just normal entery should be made.. and service tax liability not tranafer to receiver. ... unless and until cover under RCM Ok
There may be case his turnover in previous year may less than 10 lakhs.he may not be registrred for the service. Now he has to charge st on amount excess of 10 lakhs that too is borne by ur company in rcm.
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