Madhu (Team Member) (155 Points)
30 July 2013Hi,
I would like to know following query.
I have made payment to cab owner with service tax. Whether he will make service tax paymen to government or not.
I am feeling every service tax payment should be make to govnerment. please let us know, if wrong.
Regards,
Madhu
CA girl
(Article Trainee-CA Final)
(1942 Points)
Replied 30 July 2013
Hey,the very purpose of charging service tax in the invoice is to pay it to the government. The service providers are just a channel through which the service tax would be paid to the government for various taxable services provided throughout the country. So a service provider who charges service tax would have registered himself under service tax. He collects it from you and pays it to the government.
Madhu
(Team Member)
(155 Points)
Replied 30 July 2013
Hi Divya,
What you said corrrect, but i heard below point from some one.
Some type of services taxes are not require to make the payment to government. Eg. Car rent
Regards,
Madhu
CAclubindia
