IN REVERSE CHARGE MECHANISM, if service provider is not required to register undwer the act, but service receiver deduct the service tax from the bill whether this correct.
when you please get the answer to my problem
M S chandrasekar
2 Replies
Parihar Gopal
(Corporate Taxation )
(392 Points)
Replied 23 August 2013
Tax should be paid under service tax registration number of service receiver and included in his return as he is liable to pay service tax.- but the service Receiver should not deduct the same from the Bill of service Provider - He is eligible to get the Cenvat benefit on the basis of GAR-7 Challan
CA girl
(Article Trainee-CA Final)
(1942 Points)
Replied 23 August 2013
- It depends on the terms of your contract...If there is a contract or work order which says that the order is inclusive of all taxes and still the service provider has not charged service tax in the bill then the service receiver can deduct it from the bill.
- However, if no contract exists or if the contract is exclusive of taxes then the service provider cannot deduct the tax from the bill.
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