Liability to pay service tax, Service Tax

[v.k. verma]

What is the basis of liability to pay service tax under reverse charge mechanism?.Is it on due basis or payment basis keeping in view the fact that the service recipient is the person to make payment of charges and the tax too.

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[madhavvan]

As per provisions of ST Service tax payment is to be made only after receipt of payment, hence where payments have been made by service recepient for services chargeable to service tax on reverse charge the service tax is also required to be discharged once payments to parties have been made, it is not on due basis