Dear All, I have a query regarding one of my clients. He is an architect providing services as proprietor. He is also registered under Service Tax as his receipts are more than 10 Lakhs.
Currently what is happening is as follows :- Suppose my client has provided services amounting to Rs. 10,000 and charged Service tax on it @ 12.36 . Hence total bill amounts to Rs. 11,236/-. But the service receiver is making payment of only Rs. 10,000 and not making the payment of Service tax portion.
My query is that since the Service tax portion is not paid by the service receiver :-
1. Does my client need not pay any service tax as he has not received it from the service receiver.
2. Or he needs to pay the service tax on the receipt basis as per reverse charge calculation.?
Please suggest as currently my client is not paying any service tax as he is not receiving it from the service receiver although he is registered and also receipts more than 20 lakhs.
CAclubindia
