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Service tax liability regarding

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Bibhuti Bhusan Das

Financial Analyst

144 Points Joined October 2009

Dear All,

If a management consultant having registration number with Service tax department raised bill to his client with NO service tax component, as there contract paper did not mentioned regarding the same, then,

Is there any service tax liability arise in the hand of Management consultant ?

Awaiting comments.

Rgds

Bibhuti

Replies (1)

Harshal Fifadra

Chartered Accountant

1489 Points Joined August 2011

Hi Bibhuti, The service tax liability arises in the hand of management consultant. The contract does not bind the law. If it is not mentioned in the contract then the law would treat the value received by the management consultant as inclusive of tax and collect tax from such management consultant. In such as case the management consultant shall have to pay the service tax from pocket.