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Service tax

darshan (c.a) (60 Points)

25 July 2014

In no of co. During government audit I have found that they are retaining service tax for services they availed & reimbursing the same when party submit proof of payment supposed if party not paying service tax then what is our liability ? For how much time we should keep that money in retention ? Can we book as it as profit after three years ?

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Harendra Kumar (Tax Advisor ) (1326 Points)
Replied 25 July 2014

Sir,

In your case entire liability has to pay service tax only service receiver if they are not pay then their liability to be created not you. At the time of Service Tax audit the department arise the queries and demand the same service tax for receiver and also can be raised the notice in this regard under RCM or other provision made in the law.

You can be raised such queries in your Audit note for further clarification notes on accounts

Thanking you