Who will pay service tax under rcm..?

Originally posted by : navinkumar naicker
	Hi CAClubindia, As we all know that any services provided by an aggregator through a web based application , then service tax shall be paid by the aggregator under RCM or by his representative or any person appointed in his behalf in taxable terrirtory. My Question what if the aggregator has no one representiong him or anyone is appointed in taxable territory then in such situation who will bear the ST liability under RCM ? Pls give your answer with relevant case laws or rules under made under finance act 1994.?   Thanks & Regards Navin

If the aggregator does not have a physical presence or does not have a representative for any purpose in the taxable territory, the aggregator shall appoint a person in the taxable territory for the purpose of paying service tax and such person shall be liable for paying service tax.

Refer Rule 2(1)(d)(i)(AAA) of Service Tax Rules, 1994 - Definition of aggregator.

the Hotel which is receivng booking from a certain agent who is based abroad not having any PE or Representative or Any person appointed for the purpose of dischargding the liability , in such situation what will happen if the hotel does not discharge the serivce tax ( as they are not entitled to bear the ST under RCM) how will the goverment recover the same and from whom it  will recover?

Thanks a lot sir for your insight, pls i still have a doubt regarding this.

The Hotel which is receiving booking from a certain agent who is based abroad not having any PE or Representative or Any person appointed for the purpose of dischargding the liability , in such situation what will happen if the hotel does not discharge the serivce tax ( as they are not entitled to bear the ST under RCM) how will the goverment recover the same and from whom it  will recover?

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