22 October 2013
In case of security services if both service provider and receiver are company then who is liable to pay service tax???? And if service provider is liable then in case if he forgets to charge service tax in his bill then what will be its consequences?
22 October 2013
1)Reversecharge not applicable in case of service provider is company,so he need to collect full service taax from client from his invoice and responsible to make payment to department with in due dates prescribed .
2)if service provider forgot to charge service tax ,service receiver may not remit any thing towards service tax to service provider however service provider is responsible to pay tax to department presuming amount received from service receiver is inclusive of caluculation . . use below formulae to know service tax component in amount received,
service tax amount = rate/(100+rate) . you can also raise one more invoice for service tax to client and collect it,,except that there is no choice, means service provider is not responsible to pay service tax to govt.
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