TaxTMI 
TaxTMI 
Service tax under reverse charge on Vehicle Repair
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....ervice tax under reverse charge on Vehicle Repair<br> Query (Issue) Started By: - Bhuwan Joshi Dated:- 25-8-2014 Last Reply Date:- 25-8-2014 Service Tax<br>Got 2 Replies<br>Service Tax<br>Dear Sir, When Vehicles are sent for repair and servicing it is a works contract. The service provider charges service tax on service portion and VAT on material portion in the same bill. Now as a recipient of ....
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....service, are we liable to pay service tax under reverse charge as it is a works contract. If yes, then will it not be excess service tax as the provider of service has already charged service tax @ 12.36% on the value of service portion in the bill. Please Clarify. With best regards Reply By Pradeep Khatri: The Reply: Dear Bhuwan, On the same matter, we had read a favorable judgment du....
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....ly pronounced by the Tribunal, either in 2013 or in beginning of year 2014. But due virus attack on LAPTOP, data corrupted and therefore, we could not find out the relevant judgment. According to that judgment, if full service tax is charged and collected by the service provider on Works Contract service under PRSM, then recipient is not required to pay its' own share. Please also seek clari....
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....fication from the Commissioner of Service Tax. In case we come across with the relevant judgment, we will share it with you. Regards YAGAY and SUN (Management and Indirect Tax Consultants) Reply By Pradeep Khatri: The Reply: Dear Bhuwan Tribunal's Decisions If service tax accepted from service provider, no service tax can be demanded from the service recipient under the reverse charge m....
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....echanism The taxpayer had availed services of a GTA. The GTA service provider paid service tax on such transportation services rendered to the tax payer. The Revenue Authorities, however, demanded service tax from the taxpayer, being the service recipient, under reverse charge mechanism. The taxpayer contended that as per the decision of the CESTAT Ahmedabad in the case of Navyug Alloys Private ....
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....Limited v Commissioner of Central Excise [2008 (17) STT 362] = 2008 (8) TMI 100 - CESTAT AHEMDABAD, if the service tax has been paid by the service provider, the same cannot be demanded by the service recipient. The Revenue Authorities were of the opinion that if the service tax was paid by the service provider mistakenly, it should claim a refund of the same. The matter came up for consideration....
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.... before the Mumbai bench of CESTAT which held that once the service tax has been paid by the service provider and the same has been accepted by the Revenue department, it could not be again demanded from the service recipient. Accordingly, the appeal of the taxpayer was allowed. Umasons Auto Compo Private Limited v Commissioner of Central Excise [2014 (43) GST 672]. Though this judgment is in fa....
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....vour of service recipient, and If you have not made the payment against this bill as yet, then, you may deduct the service tax payment from the Service Provider's bill and you can pay your share on inform the service provider the legal position in this matter. This is for your kind information. YAGAY and SUN (Management and Indirect Tax Consultants)<br> Discussion Forum - Knowledge Sharing ....
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