Service tax liability

Dear Friends,

We have been dealing regularly with a technician. That Technician falls under the ambit of Service Tax, but has not taken registration of the same. We have insisted him serveral time for takin \g the registration, but he refuses. Can there will be any liabilty of Service Tax  towards our company if he continue not to take registration?

Regards,

 

Barun

 

 

Replies (5)

if gross receipt exceed rs 10 lakhs then registeration compulsory otherwise not

Originally posted by : valji

if gross receipt exceed Rs. 10 lakhs then registeration compulsory otherwise not

AGREED              

Hi barun, it is a duty of service provider (technician) to get themselves registered and pay tax. If he is not taking registration, then he is responsible, not you.

Service receiver has no responsibility for non-payment of tax by service provider.

Legally service provider is liable for technical services to register and pay. As a tax compliant co you may officially write tohim that once he crosses Rs. 9 lakhs he is required to register and pay once the receipts [ upto 1.7.2011 + billing after that date cross 10 lakhs.

Some companies take a declaration from the service provider on a yearly basis that he is not liable for ST and if liable he would regsiter.

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