ANKUR GUPTA (CA FINAL) (89 Points)
16 October 2015"On Goods Transport Agency (GTA) and MAnpower Supply, Service Tax Is payable under Reverse Charge Mechanism, And service Reciever is liable to pay service tax.
But in case Service provider charges service tax in bill, & the same is paid by Service Receiver company to Service provider,
Then, Whether, Service receiver liablility is deemed to be discharged."
Pls advise with relevant case laws or Section etc.
Regds.
student
(Final)
(157 Points)
Replied 28 October 2015
Hi Ankur,
The service tax law very clearly imposes the responsibility of paying the ST on the service recipient in case of RCM. There is no substitute for the legal liability. Moreover, it becomes practically difficult to prove that the Service provider has paid such service tax to the department.
Niraj Kumar Sinha
(Sr. Officer, SPSIL)
(648 Points)
Replied 29 October 2015
If we see practically then there is no loss of revenue to the Government. So if it is proved that Service Provider has paid the service tax to GOI, Service Tax officers may ignore this matter.
CAclubindia
