Service tax query

Queries 680 views 5 replies

JAYANTA KUMAR BANDYOPADHYAY

professional service

293 Points Joined December 2009

Due to non-registration under Tax, Service provider (taxable service) did not charge service tax inspite of verbal requests. After 5 years, they have raised supplementary Invoices ( involving both 10% & 12% rates, as in between tax rates have undergone change). Service provider Firm is telling us to deduct 2% tax at source on Service Tax amount. Making delayed payment and then taking cenvat credit right now is okay as per Taxation rules etc. No interest is being paid. I am confused. Please advise me.

Replies (5)

Saurabh Maheshwari

B.com ACA

5923 Points Joined December 2011

As far as posible...donot pay amt of tax to service provider..because he has not charged earlier ...now he may be asking for tax because he might be taking the benefit of ST Voluntary Compl Encouragement Scheme,2013.

Further, the liability to pay tax is of service provider....so he is statutorily liable to pay ST to govt. and cannot plea that service receiver is not paying the same to him....

So her, pls donot make any payment against supplementary invoices...

Nirav Worah

CHARTERED ACCOUNTANT

396 Points Joined August 2010

It depends upon mutual relations between the service provider and you. If you choose to make payment on the basis of supplymentary invocie, then as per cenvat credit Rules, 2004 you can avail credit on the basis of supplymentary invoices.

There will be no loss to the company if it opts to make payment on the basis of supplymentary invoice

CA Harshal Pahade

Professional

79 Points Joined June 2010

Dear Friend,

I agree with Nirav Worah... In fact I would suggest that you should make payment towards supplymentary invoices & avail cenvat credit as it is win-win situation for both of you... Your vendor can comply with all statutory liabilities with the help of you... and you can also get benifited from it...