Sivaraman A R (.) (1040 Points)
15 February 2016The service provider is charging 100% Service tax in bill, in respect of services where Service receiver is liable under RCM. Is it still obligatory on that part of Service receiver to pay ST directly to Government? If Service receiver pays ST to Service provider and if service provider did not pay it to Government, is Service receiver still liable?
Siva
Govind Shah
(CA Final)
(75 Points)
Replied 16 February 2016
We are not liable to pay under RCM, if the SP has charged service tax on the invooice.
CA Prakash N
(Head - Indirect Tax (GST & FTP))
(373 Points)
Replied 16 February 2016
Dear Siva,
Under Reverse charge or Joint charge, service recipient is solely liable for his part of payment. As SP is not paid, there is no option left for you other than recovering such ST amount from service provider and discharge the same along with applicable interest.
CAclubindia
