Service tax paid but not getting reimbursed

Dear Sir/Madam

1] we are empanelled by one dept of Goa Govt. to provide manpower services to other depts.

2] the RFP & circular of this dept in this regards both are silent on service tax.

3] initially we did not pay service tax due to ignorance and charged only the amt stated in circular.

4] having realised that our services are taxable, we paid the service tax to the exchequer.

5] now when requested, all the depts showed incapacity to reimburse service tax & are pointing to dept circular.

6] please advice how to get the reimbursement.

Mrs. Anjali Gauns

Goa

Replies (1)

The service tax liability is on the service provider as per Service Tax legislation except in cases covered under reverse charge mechanism. Hence in my opionion you will find it difficult to make a legal claim on the service receiver unless otherwise agreed in contract.
 

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