10 March 2014
what if the service receiver liable to pay service tax under reverse charge, in case of manpower supply( i.e. 75 %,) does not pay service tax and service provider charges entire 100% tax. Thanx in advance.
10 March 2014
Legal liability to pay tax 75% os that of service receiver . Under reversecharge service provider and service receiver liability is independent . Department may ask u to pay ur part of seevice tax ..ur liability cannot come to end assuming ur service provider paid . Service provider should charge only his part of liability which is 25% . However u can say that there is no revenue loss to dept and it is debatable... . So now onwards payservicetax to service provider only to the extent he is eligible .
CAclubindia
