Dear Friends,
Fact of the case:- for the month October, We have received a service of labour supply (Manpower for interior work). They have worked in our customer place as per our requirement & Creditor charged 12.36% of Service Tax on the invoice.
Issue:- As per RCM rules , our liability is 75% ST. But the service provider has charged 100% service tax that is he has followed the old scheme. Now the question is since we have already paid 100% of the amount with 12.36% ST, Will our liability still subsists over Service tax to be paid under RCM as already service provider has collected 12.36%. If yes will it not be double revenue to Government. If no then should we obtain any letter from service recipient as to he has discharged the liability hence no amount is due towards ST.
Thank you
CAclubindia
