Service tax demand

Queries 445 views 2 replies

A service provider who has not charged service tax on services provided in previous years, comes up with a request to pay service tax on previous year bills as they have been charged with a service tax liability by the department. Is the service receiver liable in this case to pay the service provider the amount so demanded. If he is liable, what are the documents he needs to get first?

Replies (2)

Sir,

In this regard some observations found i.e. what is the period for provided such services, if taxable services or not taxble. such observation mention then i advice to you you are liable to pay service tax or the demand raised by the department is legal or unlegal. Plz clear the observation. If you having other observation plz forward the same.

 

Service TAx is an indirect TAx and is required to be colleced from the Service Receiver. In fact, the invoice issued by the Service Provider should indictae the Service TAx amount seperately in addition to the Service charges. In case of no mention of Service TAx seperately in the Invoice, it will be construed that the amoutn chatged in the invocie towards the Services rendered, the Servcie TAx amoutn is inclusive. In your case, unless it is mentioned in the Work Order or Purchase Order about the reimbursement of Service TAx, you can consider that the Service TAx amount can be considered as inclusive in the Invoice amount.


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