Collection of payment chaaln from service providers

This query is : Resolved

BASAVA SRINIVAS (Querist)
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06 October 2015 Dear Experts,

we have paying service Tax through Service providers tax Invoices, and insist to them to provide service Tax challan after making the service tax payment what ever we have paid them through invoice.but some service providers are not willing to provide service Tax payment challan and ask me to show the Rule. Hence i am requesting you to provide rule Number.Because they are trying to avoid service tax payment what ever collect from us.

further my quarry if service provider not paid the service tax then is there any affect to us against availing cenvat credit.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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06 October 2015 There is no rule where service provider is liable to show the service tax challan to service receiver.
It is enough if service provider is claiming service tax in tax invoice with service tax registration. You can avail the cenvat credit once you have paid the invoice.

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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07 October 2015

Hi Srinivas.. I Agree with Seetharaman opinion that there is no rule who makes liable to services receiver to ensure that service Provider is actually paying such such Service Tax amount whatever charged on their invoices...

However for controlling point of view you may instead of paying service tax portion to Service Provider directly remit such amount to Central Govt by mentioning such details of Service provider. But you need to ensure that there should be effective co-ordination and communication otherwise this may also a point of dispute between you and service provider..

Thank You..

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