Dear All,
I have some questions relating to reverse charge of service tax.
Q1. If service provider turnover is less than Rs.10 lakhs & he does not charge any service tax in his bill, then in what way liability of service receiver will generate? is receiver is liable to pay service tax?
Q.2 Our Co. has hired a car. When it receives the bill there was service tax only 4.944% .i.e. 40% of 12.36% & we pay him including this amount & he filed his service tax return itself for 40% amount only. Is this correct? The 40% in fact is the liability of service receiver & remaining 60% is exempt for service provider, as per rules. Then in this what will be the consequences? Is there is no libility of service receiver as he already pay his part of service tax i.e. 40% of service tax.
Please clarify me & give me best advise/solutions in this regard?
CAclubindia
