Show cause notice

This query is : Resolved

Neha. (Querist)
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20 November 2012 Our Company has booked CCR of service tax paid on service recieved of Manpower supply & but manpower supplying agency has not deposited service tax, so authority have issued the show cause notice to the main clients of that manpower supply agency & asking to reverse that credit, so please suggest what to do in this circumstance & please also provide legal support or case law reference

Thanks

Pankaj Gupta

Pankaj Gupta (Expert)
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21 November 2012 If ur co is mainaining proper records of invoices etc in regards to that payment, Than ur co co need not worry. Because ur co has paid the tax and the default is made by the manpower supply agency. Hence the department will recover the tax from the agency by issuing a scn u/s 73A.
Read the section. it is very clear. No need to refer any cases.