- 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?
Answers!
There can be 2 cases
- Service falls under Normal Charge
- Service falls underReverse Charge
- 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
Comment
Answer the question...
There can be 2 cases
- Service falls under Normal Charge
- Service falls underReverse Charge
- 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
Comment