Service tax in reverse charge and service provider not regis

Queries 533 views 6 replies

What will be the service tax liability of a service receiver under reverse charge mechanism when the service provider has not registered in service tax.

Eg- freight paid to goods tranport agency Rs8500.

But GTA has not mentioned st no On bills and not registered under st.

Replies (6)
Non-registration under service tax by service provider will not affect your liabilty. Book your liability and pay to authorities timely.

Service Recipient liable to pay Service Tax.

Section 69(1) of the Act mandates that every person liable to pay tax shall obtain ST Registration.

 

You have to pay your liability, it is not material for you,, whether service provider is registered or not?

In case of GTA service, service recipient is liable to pay service tax under reverse charge mechanism. Service recipient has to comply with procedural requirements (viz. registration, payment and return etc) under service tax law.

 

There is no need for service provider to obtain registration in this case.

Hope the above clarifies your query.

Service tax notification no 33/2012 doesn't apply in case of reverse charge mechanism, so even GTA provider's covered under SSP exemption, service receipient shall discharge his liability. Moreover under reverse charge mechanism service receipient must pay it's liability irrespective of the fact that service provider is registered under service tax or not.

Thanks for clarifying.


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