Recepient of service,can he deduct tax from service charges

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 January 2013 Dear sir,

please clarify the following,

since in case of transport services, service receiver is required to pay service tax,can he deduct tax from service charges or is required to pay from his pocket.

Kaushik Vinod

Kaushik Vinod (Expert)
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17 January 2013 Practically you can note deduct the tax from Service charges since you are going to get the credit of it.
But still if you are not taking CENVAT then also indirect tax is always borne by the Service recipient.

Thanks