• Answer of this question

    - if service provider not charging service tax on bill & not depositing to department then who is liable for service tax...service provider or service receiver..??? supprot with actual case study
    Davneet Singh's image
    Davneet Singh

    There can be 2 cases

    1. Service falls under Normal Charge
    2. Service falls underReverse Charge

     

    1. Service falls under Normal Charge

    In this case,Service Provider is responsible to pay Service tax

     

    Suppose Service provider gives bill of 100000 and fails to charge Service tax,

    it will be assumed that bill of 100000 includes Service tax of 15%

    So

    Amount=100000*100/115=86957

    Add Service tax @ 15%=13043

    Total=100000

     

     

     

    2 If Service falls under Reverse charge

    Suppose Service provider gives bill of 100000 and fails to charge Service tax,

    In this case, Service receiver has to pay him 100000+pay 15000 Service tax to Govt

    In case,Service provider gives bill of 100000 + 15000 Service tax,in this case also Service receiver has to pay him 100000+pay 15000 Service tax to Govt

     


    Written on Aug. 11, 2016, 11:05 p.m.