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Is company liable to pay service tax if it is not registered as on date of liablity

10 March 2016

Hi guys, Please let me know that is company liable to pay service tax (on RCM) if company is not registered with ST as on date of liabilty?? if yes please provide provision for that

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5 Replies

CMA Poornima Madhava (CMA) (13112 Points)
Replied 10 March 2016

For companies liable to pay ST on RCM, time limit to register is 30 days from the date of arising of such liability

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avinash (Student CA Final ) (21 Points)
Replied 10 March 2016

Yes The company has not liabilty of paying the service tax on RCM basis as the applicabilty of Service Tax Provisions will be held only when it is registered under the Service Tax.Until and unless the company is regidtered under service tax the provisions of the so will not be applicable.

But if the company have applied for registration and mean while the respective liabilty has occured then the company is liable to pay ST on RCM basis.

Hari Sripada (101 Points)
Replied 10 March 2016

Hey thanks for the reply

but please can you provide me the link or let me know provision where it is shown

Venkatanarayana GM (Partner associate at Hiregange & Associates) (1279 Points)
Replied 11 March 2016

Mr. Hari Sripada,

As per the Section 68(2) read with Rule 2(1)(d) of service tax rules, 1994. Further you may have to refer 30/2012 service tax as amended from time to time.

These above provisions which creates liability under RCM

Few importants points to be noted.

1)The service receiver is eligible to avail cenvat credit of service tax paid providided if the same is eligible

2) He is liable independently from Rs.1/- and not eligible for SSP exemptin under 33/2012 ST

Venkatanarayana GM,

venkat @ hiregange.com

9620116162