Failure to charge service tax

This query is : Resolved

Ajay Agarwal (Querist)
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07 January 2013 If any vendors fails to charge service tax on its bills and we find that he is liable to charge service tax because his turnover with us is more then 10 lakh in previous year Now whether we should pass this bill for payment ? Again if there is any legal impact or statutory penalty on us.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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07 January 2013 Unless that particular service covered under reverse charge method, you no need to bother if vendor not charging service tax. it is service provider responsibility to charge service tax on their bill.if not charged no need to bother.

Ajay Agarwal

Ajay Agarwal (Querist)
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07 January 2013 If later on vendor asked for the payment of past service tax under department pressure or suo moto whether we should pay ?

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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07 January 2013 Yes. In case if he charges later all the service tax together or department caught the vendor not charged service tax, they may issue the demand notice to pay the service tax directly to department also, generally before issue the work order or work it is required to check the vendor details and keep informing the tax applicability, even he is not charging. that is his problem. as service receiver you can pay on charging or demand

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