Reverse charge mechanism in service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 February 2014 i am working in GIL a co. in infrastructure we have work order inclusive of Service Tax therefore we do not charge Service Tax separately to client But client calculates it on Reverse charge mechanism base is it correct or wrong?

Ganeshbabu K

Ganeshbabu K (Expert)
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18 February 2014 In my opinion what they have done is correct
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Bcoz legal liability is of service receiver.

That liability does not disappear even assuming that the service provider has paid the service tax.

Service receiver liable for only his part and not entire amount, even if service provider does not charge his portion of service tax
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Kindly Note that A statutory liability cannot be shifted by mutual agreement. If statutory liability is of service receiver, he alone is liable..

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