Service tax on works contract

Queries 421 views 1 replies

As per service tax, ultimate liability of service tax is on service receiver. but in reverse charge mechanism some portion is paid by provider and some by receiver. now question is, when service provider issues bills to receiver, should he also include his part of service tax in bill? and should receiver has to pay back provider's portions of service tax to provider? and if it is so, then what was the need to introduce reverce charge?

Replies (1)

The practice is that the Service Provider charge Service tax of his portion and put a note in bill that the remaining amount so and so of service tax will be paid by receiver of Services


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