Jitendra A Bathija (Employee) (122 Points)
03 October 2009Suppose i m a service receiver .
I m taking same service from two different service providers of Rs 50Lakh each and one service provider is charging service tax while another one is not charging service tax.
Both are resident service providers . One is registered and the other one is not registered.
Name of the service is Contractual Services like Excavation
Querry : Whether there will be any liabilty of the Service receiver?
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 04 October 2009
The service reciver has been liable for payment of service tax and where the SP does not collect and pay the ST the receiver is not concerned.
At times the dept proceeds against the SP and gives a notice to the SR that the amount due to the SP should be forzen as the ST is payable by him. That could be the impact.
EKALABYA TALUKDAR
(SERVICE TAX CONSULTANT)
(666 Points)
Replied 04 October 2009
SERVICE PROVIDER IS PLAYING A HIGH RISK GAME TO BENIFIT YOU
Gautam Joshi
(Partner)
(361 Points)
Replied 04 October 2009
In State VAT Laws, there is a Purchase Tax meaning by if other person is not registered purchasing person will loose the benefit of VAT Credit.
The same is not the case with Service Tax.
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