Service tax wrongly paid by another person

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dipendra kumar

Tax & Audit Executives

32 Points Posted on 25 April 2016

Kindly answer this question................

In a service, Service Provider (Individual) is liable to pay service tax on output services provided by him but Service Receiver (Company) has paid such service tax and mentioned in its ST-3.

Now the question is, whether service provider is still obligized to pay such service tax whatever, already,has been paid by service receiver. IF yes then how to be adjusted such the service tax amount already paid by service provider.

Replies (3)

CA Kumar Mukesh

CA CMA FINAL and Advance Excel Trainer

4709 Points Posted on 25 April 2016

Its seems that... Service receiver liable to pay service tax under Reverse charge mechanism... In this case you need to pay only specific % provided in the act...
Otherwise of still service receiver paying taxes directly to the govt... Then paying to you... It is mean you are only receiving basic amount of services provided by you... I. E. Excluding of service taxes... In this case you need to ask challan from services receiver and mention those details in your return

mohammad rasool baig

Management Consultant

997 Points Posted on 25 April 2016

Even if service receiver pays the service tax, obligation on service provider will be continued & service provider needs to pay his portion of service tax

But excess payment made by the service receiver can be adjusted with the next ST payment by the service receiver.