Payment of service tax by service receiver

HI, 

There is no provision in service tax rule or finance act 1994 reagarding payment of service tax by customer to vendor only on production of proof of service tax payment. However, orgonisation can put such a conditions for their internal workings for in their commercial dealings. Even if u r not liable to pay service tax as u have sufficient cenvat credit available, u can communicate the same with that PSU under the proper authority of your orgonisation.

As far as law is concerned, no such condition exists in service tax rules/ finance act 1994. 

Regards,

Manoj BG.

HI, 

There is no provision in service tax rule or finance act 1994 reagarding payment of service tax by customer to vendor only on production of proof of service tax payment. However, orgonisation can put such a conditions for their internal workings for in their commercial dealings. Even if u r not liable to pay service tax as u have sufficient cenvat credit available, u can communicate the same with that PSU under the proper authority of your orgonisation.

As far as law is concerned, no such condition exists in service tax rules/ finance act 1994. 

Regards,

Manoj BG.

Yes..you should communicate the same to the PSU that you have sufficient CENVAT credit. On this ground, they have to release the payment inclusive of service tax.

Regards

Prateek

Agree with manoj ji

You can submit the half yearly return of service for having appropriated service tax payments from Cenvat credit which would be a sufficient prrof for having made the payment to the service tax authorities. I presume the PSU is insisting for challan as they would be eligible to avail credit of this service tax payment.

Agreed with Mr. Srinivasan. You can also produce a certificate to your client regarding payment of your service tax through CENVAT.