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service tax liability

1077 views 3 replies

Ankur

112 Points Posted on 10 May 2007

dear freind,

if a person doing construction labour is not covered under service tax(i.e. having receipts below 4.00 lac) and he raises bill to xyz pvt. ltd.

whether pvt. ltd. is liable to pay service tax on that amt.

if that person actually has receipts above 4.00lac but intentionally tell us wrongly to evade service tax then whether xyz.pvt. ltd. liable for service tax.

its urgent

Replies (3)

Rakesh

16 Points Posted on 10 May 2007

Dear Friend,
The xyz co. has no liability to check the gross turnover of the service provider.It has to rely on the bill raised by service provider to pay service tax.The liability to pay service tax ison service provider in this case in case of any fault found later.

Rakesh

16 Points Posted on 10 May 2007

Tony Mp

94 Points Posted on 10 May 2007

XYZ co is not liable to tax. The entire liability is that of the service provider. Even if the service provider hides the facts, he himself will suffer and XYZ is free.