Service tax liability under reverse charge mechanism

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..... Service tax liability under reverse charge mechanism
Query (Issue) Started By: - Swapneswar muduli Dated:- 28-3-2016 Last Reply Date:- 29-3-2016 Service Tax
Got 4 Replies
Service Tax
Dear Sir, We are a Pvt Ltd Company one individual provide service to us with material which is falls under works contract service. Service provider not charge the service tax on his invoice due to any r .....

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..... eason but we as a company we paid the service tax under reverse charge mechanism our % i.e 50 % . My question is if service provider not charge the service tax on his invoice in that case as a compnay we are lible to pay the service on total service tax that is 50% of service receiver as well as service provider also ? Regards Swapneswar Muduli Reply By Rajagopalan Ranganathan: The Reply: Sir .....

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..... , You have to pay service tax on 50% of the gross amount charged by the service provider. Whether the service provider pay the tax or he is enjoying any exemption notification and such availment is correct or not is the look out of service tax department and you need not worry. Reply By Ganeshan Kalyani: The Reply: Sir, the liability of service provider lies under his registration number. and .....

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..... liability of service receiver lies under his registration number. Each has to bear his portion of liability independently. As a recipient of service you are liable to pay only your portion of service tax liability. Thanks. Reply By KASTURI SETHI: The Reply: I subscribe to the views of both experts. This issue has already been discussed in this forum. Reply By surya narayana: The Reply: Dear S .....

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..... irs, The views expressed by the experts need no intervention. Further, the concept of partial reverse charge was introduced to check out the evasion by the service providers since the records of the recipient revals ST payment under such partiaal reverse charge based on which the Department take the necessary action on the service provider if they have not taken registration or otherwise not pay .....

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..... ing ST on their portion. Best Regards Suryanarayana
Discussion Forum - Knowledge Sharing .....

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