Question ID :
16533
liability
A (non-corporate) bills B corporate for some services liable under reverse charge. However C {corporate pays the bill on behalf of B.
1) Who is liable to pay service tax under reverse charge?
2) C will raise a billdebit note to B for the amount? Should C charge service tax on such bill? or can the amount be taken as payment under pure agent and hence no ST liability?
Posted by
t sankar
on
May 28, 2013
Filed Under
Service Tax
The background mayeb made clear along with reasons for the transactions.
In normal course the person receiving the service wouldbe liable.
Posted by
Madhukar N Hiregange on
May 29, 2013
Answer ID :
44897
B c are group companies. B does not have funds. So C pays.
Posted by
t sankar on
May 29, 2013
Answer ID :
44930
ACTUALLY C SHOULD GIVE A TEMPORARY ADVANCE TO B TO MAKE THE PAYMENT OR C CAN MAKE THE PAYMENT AND REMIT SERVICVE TAX IN THE ST REG AND NAME OF B.C IS NOT RENDERING ANY SERVICE TO B AND HENCE NO SERVICE TAX LIABILITY
Posted by
CA. VENKITARAMAN K V on
May 31, 2013
Answer ID :
45028
B being the service receiver is liable to pay service tax under reverse charge... pawan.kumar.jain@icai
Posted by
CA. Pawan Kumar Jain on
Jun 07, 2013