We had provided Service in the field of Automation to a EPC contractor for the project at Terimnal-3 at Delhi Airport. We were provided with purchase order mentioning that this service is exempted from service tax U/S 65(105) ZZZZA (Airport). However, during service tax audit objections were raised by auditor claiming that these services are not exempted under this section & service tax has to be deposited for all the invoices raised by us on our contractor. We contacted the contractor & it says that as per them exemption is valid & they will not pay us the service tax.
Our query is under the above scenario, who is responsible to pay the service tax. If the contractor does not pay us are we still liable to pay to service tax department.
CAclubindia
