14 December 2012
I want to know that in case, a service is covered under reverse charge mechanism and the liability of Service Provider and service receiver is 40% and 60% respectively ( Rent a cab). Now, The service provider has charged 100% tax in the bill raised by him. In this case also, Whether the service recipient is liable to discharge his share (60%) to the s tax department.
14 December 2012
To my view, the liability can't be shifted; It is for the corporate to pay 60% under revese charge mechanism. Moreover, it is not known whether the service provider pays the tax or not.
It is safer for the corporate assessee to pay the service tax @ 60% and deny the portion of the service tax in the service provider's bill.
CAclubindia
