26 August 2014
Our Company has received Manpower and Work Contract Services from another Company in February 2014. For Which Service provider Co. issued invoices and charge service tax @12.36% avoiding Reverse Charge Mechanism.Our Co. did'nt notice it at that time and paid service tax @12.36%. Now we have noticed it that this is contravention of Reverse Charge Mechanism. Now please tell me any remedy by which we can correct it.
26 August 2014
make application to the concerned service tax cell stating that your company will act as per the reverse charge mechnism PROSPECTIVELY The concerned officer will give effect to the retrospetive transaction accordingly.
27 August 2014
Also you can quote the recent caselaw of Hon’ble Mumbai CESTAT, in the case of Umasons Auto Compo Pvt. Ltd. Vs. Commissioner of Central Excise & Customs, Aurangabad [2014 - T IOL – 126 – CESTAT - MUM] where it was held that once the amount of Service Tax is accepted by the Revenue from the provider of GTA service, it cannot be demanded again from the recipient of the GTA service. The same apllies to ur case also.
CAclubindia
