Is service receiver pay the taxes ?

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Saroj Rana (Querist)
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03 January 2008 Is receiver of services will pay the tax.........?

For example:
My co. receives counseltig services from a co.
The amount is Rs.1.25.000
& service tax @ 12.36=15,450 so the total is Rs.1,40,450
My question is how much i have to pay to the co. who is providing services and
how much to the Govt.

Plz give me the solution, I m very much confused

CA. Vineet Grover

CA. Vineet Grover (Expert)
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03 January 2008 Hi Saroj,

You need not have to deposit any amount to the Govt. with regard to service tax liability.
Only in four occasions the receipient of service shall be entitled for despoit of service tax:
(1) services received from a person outside india u/s 66A
(2) goods transport agency
(3) business auxilliary servies of distribution of mutual funds
(4) sponsorship service
As the above service doesnot fall under any of the services mentioned above, despoit of service tax liability by the receipient does not arise.

Rgds/
Vineet

Saroj Rana

Saroj Rana (Querist)
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03 January 2008 Esteemed Sir,
Thanks for the solution

But i have one more question

After paying the bills should my Co.is liable for any TDS, If so then what will be the %

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Dayal

Dayal (Expert)
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12 January 2008 The onus of discharging liability on account of service tax is of the provider except for specified services

The service stated by you is not being one of them the service tax is to be paid by the provider in your case

You shall only pay to the service provider as per the bill raised by him and can take the credit of service tax ( after payment and due credit to the provider) for dishcaring any liability that you may have as a manufacturer or a service provider.

If you are neither a service provider nor a manufacturer then it should be booked under the head of expense to which the expense belongs

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Dayal

Dayal (Expert)
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13 February 2008 I hope this clarifies your inquiry should you need further feedback clarification do write back