Service Tax Payment even if the service provider is exempted.

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..... Service Tax Payment even if the service provider is exempted.
Query (Issue) Started By: - Saurabh Kumar Dated:- 17-7-2012 Last Reply Date:- 24-8-2012 Service Tax
Got 3 Replies
Service Tax
It is said that if the turn over of the service provider is less than 10 Lacs then he is exempted from service tax but same is not true for the service receiver. Then how service receiver will be con .....

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..... vinced that his service provider has paid the right amount of the service tax because by the service receiver, service tax is paid extra at actuals after the submission of the documentry proof by the service provider? -Regards, Saurabh Reply By vasudevan unnikrishnan: The Reply: Once the service provider is within the threshold exemption,there is no liability to be shared by the receiver.In th .....

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..... e reverse charge method,first the quantum of tax is to be worked out in the invoice and then the same is to be shown with the split of 'paid by SP'(service provider) and balance to be paid by the SR(service Receiver).Thus ,in the instant case tax payable is NIL within 10 lakhs.and thus nothing is to be paid by the receiver.Moreover,as per notification no 30/2012-ST,,sharing is applicable only when .....

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..... the service is provided to body corporate;no sharing when both SP and SR are body corporates or both are non body corporates. vunnikrishnan, email:[email protected] Reply By Harsh Jindal: The Reply: Mr. Saurabh, service receiver have to pay the tax on reverse charge basis except some cases. There is no issue regarding threshold limit of service provider. Reply By sanjay bulakh: The Reply: .....

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..... "The liability of the service provider and service recipient are different and independent of each other. Thus, in case the service provider is availing exemption owing to turnover being less than Rs 10 lakhs, he shall not be obliged to pay any tax. However, the service recipient shall have to pay service tax which he is required to pay under the partial reverse charge mechanism." Sanjay Bulakh .....

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..... email- [email protected]
Discussion Forum - Knowledge Sharing .....

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