Reverse mechanism under service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 October 2012 DEAR SIR,

UNDER REVERSE MECH. SERVICE PROVIDER & RECEIVER BOTH HAVE TO PAY 50% EACH FOR SERVICE TAX IF,SOME LABOUR WORK IS DONE ON CONTRACT BASIS.

HERE SERVICE PROVIDER IS AN INDIVIDUAL HAVING TURNOVER AROUND RS.6 LACS P.A.

AND SERVICE RECEIVER IS A COMPANY WHICH IS UNDER SERVICE TAX BRACKET ALREADY.
MY QUESTION IS:-
>WHETHER SERVICE PROVIDER IS TO PROVIDE /PAY ANY AMOUNT IN THE BILL FOR SERVICE TAX .
>IF SERVICE PROVIDER IS NOT CHARGING.......SHALL RECIEVER BE LIABLE TO PAY HIS 50% AMOUNT AS SERVICE TAX & DEPOSIT.

CA AYUSH AGRAWAL

CA AYUSH AGRAWAL (Expert)
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29 October 2012 Fst Understand, Both Have There Own Liablity No Interrelation.

So In This case Only Corporates Will pay 50%.

Provider is not Liable to Pay service Tax.