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Query on service tax

Queries 553 views 2 replies

Consider two firms A & B. Both of the firms getting legal services from a company X. But the bill used to get raised in the name of B and B reimburse the full bill amount to C. My query is , in any way does service tax liability arises on A ( In respect of deemed income of availing benefit without paying any considerations ) ???

 

A fast reply would be highly appreciated.

Thanks

Replies (2)
A is provider of service or recepient? If A is provider then the liablity to pay st rests on company x. If A is receiver of service and if b is paying the full st combined, then B will be considered as an agent of A in disposing of service tax. In any case levy of service tax cannot be cancelled only the burden of shifting the liablty to pay can be changed.

Thanks Karthik.V.Kulkarni

 


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