Servicetax clarification

Sir,

 We, a propritory concern registered in work contract category quoted for rewinding work with M/s. Fact ltd ( public sector undertaking). We quoted inclusive of Vat Tax and service tax and already mentioned the rate quoted includes only service providers liability towards service tax. We specifically mention service receivers liability is not included and will be companies liability. The  company issued workorder inclusive of vat tax and 8.652% service tax. We pointout that 8.652% includes both service providers liability/ service receivers lioability and requsted that service receivers liability should be paid by the company. The company informed that as we quoted inclusive of service tax we are bound to pay providers and receivres liability. Rewinding work both raw material and labour is involved.

Kindly advise.

Replies (1)
Dear joseph In your case as per service tax rules and latest amendments it is the liability of the service receiver and provider both to pay their part of service tax. Hence if company is refusing to do the same then it is a default from thier side. I suggest you to ask them to consult thier c.a on the same. As per my knowledge your only lible to pay your part of service tax. I also suggest you to put the same query on our expert pannel instead of forum. They might suggest you the ways of dealing on these matters professionally. with best regards

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