03 July 2014
Respected CCI members, As per Reverse charge mechanism ,Some part of Service tax is payable by service receiver and some by service provider.My query is that service provider does not follow rules and bill at 12.36% for Man power and security services ; so can service receiver claim full 12.36% as ITC????
03 July 2014
If service provider is Company he will claim full 12.36% of service tax from service receiver in his invoice . . but if service provider is individual/partnership and providing service to business entity registered as body corporate . . Service provider not correct in claiming full service tax amount in his invoice . . he should charge only to the extent he is liable to collect . . EVen he claim full service tax it is recommended to pay only his part of service tax to him and pay balance payable to dept directly under ur service tax registration number through GAR7 challan as a service receiver . . . . Because legal liability is on you to discharge service tax,,Later on deppartment may insist on you to pay service tax on these . .
03 July 2014
If you already made full payment to service provider get a certificate/proof from him that total received by him from you was paid to department with out any failure so that later if any difference with department you can claim that there is no revenue loss to department . . But dont let this happen again,,,pay directly to department under your service tax registration number to the extent of your liability as a service receiver to avoid this differences and harrasement from dept.
CAclubindia
