HI dears,
If a service provider being partnership firm providing supply of manpower raise a invoice to a company charging service tax @ 12.36 % instead of 25% ( As per reverse charge mechanism). Whether the company will have the liability of paying service tax @ 75% on tax amount? And whether company can take the cenvat credit on total amount?
Yes. the company's liability is independednt of the liability of the vendor as per the new mechanism. therefore, co will have to pay the 75% service tax.
Sir what if the service provider paid to the goverment as he had collected from us? And also they have charged full service tax amount from us?
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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