Service tax not paid by service provider

Suppose iam recieving certain services from a service provider. but the service provider has not taken any registration for the same as yet.

if this continues and on scrutiny by the department. will i be liable for any penelty or service tax?

 

 

 

Replies (6)

Dear Jeevesh,

                             You will not be liable. write me any query related to taxation. my email id is sachinagarwalcallb @ gmail.com

Dear Sachin,

Nice to see ur reply... is there any provision of laww for the same ?

Also what would be the situation when he is not charging tax from me and i am aware of the fact that he is not registered ?

Regards

 

Most of the services make the service provider liable. In such cases only the service provider is liable and you as the service reciver have to only ensure that you know the service provider and have no reason to belive that he is not genuine.

If he is not paying the ST that is only his problem and not yours. If dept. asks you are required togive details of the service provider and amount of service provided.

Warm Regards

 

Service tax law contains the provisions of grossingup. Hence, if department raises demand on the service provider at later point of time, the amount paid by you will be considered as inclusive of Service tax and the service provider will be liable to pay ST. In no circumstances, there can be any demand on you

But it appears u may face problem in taking credit, as invoice will not contain details of Service Tax Registration No.

Mr. Jeevesh, you are not liable to pay service tax. because service provider have not taken service tax registration.

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