Liability of user when Service Provider does'nt collect Service Tax, Service Tax

[prasanna shenoy]

What is the liability of a service user ( contractor ) if his service provider ( sub-contractor ) does not include and collect Service Tax in his invoice.

Posts / Replies

[Rama Krishana]

There is no liability if subcontractor is not charging service tax in his invoice even if he is supposed to charge service tax from the service recipient. But, in case sub contractor proves that he has not charged service tax on the advise of main contractor, there may be civil liability but there is no scope of any tax liability on the part of main contractor.