deposit of service tax under reverse charge

[S.C. WADHWA]

An individual furnishes a bill showing service tax 12.36% towards AMC of

EPABX. On such service we as a company is required to pay service tax

on reverse charge mechanicm.

Now what we should do,

Whether to obtain written decalartion from him that he has deposited the

service tax or

We should deposit our share of service tax and give him debit note.

AI Summary

Reverse charge liability: if the service provider paid tax and revenue accepted it, the recipient need not pay again.
Where the service provider deposits service tax and the revenue accepts it, the tax cannot be demanded again from the service recipient under the reverse charge mechanism; recipients should obtain written declarations and proof of payment, and ordinarily discharge only their share under reverse charge going forward.