payment of tax??

This query is : Resolved

Jagruti (CS) (Querist)
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07 April 2011 Under service tax our customer is deducting the tax and making payment to us on net basis. We asked them to pay full amt (including tax). However the customer is asking that first you pay and show us proof of tax payment. than we will reimburse the amoount.

So under which rules or law customer has right to ask for proof of payment. Else what procedure we can follow to recover the sum from customer amt being huge.

prasad

prasad (Expert)
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07 April 2011 The customer cannot deduct the service tax payable. You have to recover the service tax
from your customer.

Its only the precautionary measure taken by the customer.