liability to pay service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 June 2011 Sir,

My question is who will liable to deposit the service tax if the contractor is not depsoiting the same & not charging to to employer.

In that case , whether the principal employer is liable to pay tax? Kindly advise.

S.P.Mahanta

S.P.Mahanta (Expert)
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25 June 2011 Liability to deposit Service Tax is on service provider on receipt of payment.If Service receiver, do not make payment for service received, no liability for service tax arises. The principal employer shall be liable to pay service tax on behalf of service provider on value of service received.

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