Non payment of service tax by service recipient

This query is : Resolved

Somanath Hiremath (Querist)
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12 December 2013 whether service provider is liable to pay service tax on whole amount received,if service recipient liable to pay service tax has not paid ST under partial reverse mechanism.
For example, Mr X service provider & Mr Y service Recipient.
Mr X provided taxable service for 50lakh rupees. Mr X & Mr y each are liable to pay service tax 50% of the Gross amount. If
Mr Y( Service Recipient) has not paid the ST on 50% of the Gross amount, Whether Mr X liable to pay ST on whole Gross amount of 50lakh or on 25lakh Rupees.

AJITHKUMAR M

AJITHKUMAR M (Expert)
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12 December 2013 Dear friend,

If your case is the one covered under Notification No.30/2012 dated 20.06.2012, then the extent of service tax payable by the service provider and recipient has to be paid by you and service recipient. In my view, as queried by you, if you have fulfilled your service tax obligation of paying 50% of the service tax, as a service provider, then you are not liable to pay the remaining 50% which is payable by the service recipient.

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