Whose liability is service tax

As we know that service tax is an amount to be added on and above the amount of service work done, which is to be paid by the employer (Emp) to the service provider (SP) and by SP to govt.

In a case where Emp is unable to to pay any sum (out of that bill) to the SP, than how the SP becomes liable to pay service tax to the govt. from the day of raising the bill. An amount which is to be given by the Emp, can not be the responsibility of SP, when he is not even getting any sum  even from his own cost of work. 

1. Should it not be the total responsibility of Emp to pay govt.?

2. In such case as above, what can SP do ?

Replies (1)

This would be the case of bad debt to the service provider.

 

There has been no consideration towards the services provided by the service provider. Hence there will be no liability.

Also drawing your attention towards: /forum/service-tax-treatment-in-case-of-bad-debts-112855.asp#.VP_qHv4fpdg

 

 

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