Reversal of service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 August 2014 If service provider charge full 100 % under service of labour contract what are the consequences?? Is any liability arises for 25% for service receiver?

Ganeshbabu K

Ganeshbabu K (Expert)
Follow

15 August 2014 Department may raise demand for 25% of service tax as legal liability is on you to pay service tax directly to dept
.
.
however we can argue that there is no revenue loss to dept
.
.
But we can expect dept harrassment in this regard
.
.
better go as per Rules
.
.
for future take this strictly and for payments which was done already get confirmation from service provider that he has paid total service tax received from you to govt

Rupesh Jain

Rupesh Jain (Expert)
Follow

16 August 2014 if service provider is company PVT Ltd/Ltd then charge full rate of tax. no need to pay.
but in other than company then you have to pay 75% service tax on labour bill.

Upgrade to CAclubindia Pro. Subscribe Now!