WE ARE PVT LTD MFG CO REGISTERD IN EXCISE & SERVICE TAX WE ARE TAKING A CONSULTANCY FROM A PERSON FOR MANAGMENT SYSTEM AND PAYING 20000/- PER MONTH. HE IS NOT CHARGING ANY SERVICE TAX ON HIS BILL. WE DONT KNOW WETHER HIS BUISNESS IS MORE THAN 1000000/- PER YEAR OR NOT. SO I WANT TO KNOW IS THERE OUR LIABILITY TO PAY SERVICE TAX ON THIS AMOUNT.
SECOND THING SUPPOSED HE SAID THAT HIS BUISNESS IS LESS THAN 1000000/- PER YEAR SHOULD WE HAVE TO TAKE ANY DECLARATION FROM HIM
27 December 2012
Since the current service does not fall under the ambit of services mentioned in the reverse charge mechanism, I do not think you will be liable to pay Service Tax. It is advisable to keep a declaration with you that the service provider is a Small Service Provider (SSP).
CAclubindia
