24 February 2016
the amount of contract pri
ce is inclusive of all taxes.
the service category is manpower supply where 100% reverse charge apply.
now what will b the liability of corporate because provider is not liable to pay service tax. assume that contract price is 30000 inclusive of taxes
26 February 2016
1)Service receiver cannot escape from ST liability by your contractual obligations and at the same time service provider cannot demand service tax where it is not permissible as per RCM rules. 2)So you may make payment treating 30000 as inclusive of service tax and pay amount excluding service tax,if your service provider not agrees for this you either accept additional cost or change service provider
CAclubindia
