09 September 2013
THERE IS NO QUESTION TO AVAIL REVERSE CHARGE.. WHEREVER REVERSE CHARGE APPLICABLE SERVICE PROVIDER AND SERVICE RECEIVER BOTH NEED TO PAY SERVICE TAX OF THEIR PART WHETHER ABATEMENT TAKEN OR NOT.
The abatement and reverse charge mechanism are two different concept
Normally the concept of abatement prevails where there are chances of dual taxation. So the abatement provides relief to the assessee. It happens where the price includes value of material and service provided.
However the reverse charge mechanism is different from abatement ,where the total liability of service tax is collected from the service provider as well as receiver.and it is not an abatement.
certain portion of burden of liability to pay service tax gets shifted to service receiver as well.
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