Circular or Notification No

[SANDESH SHINDE]

Dear Sir, please mention circular or notification no in which service receiver has to determine whether service provider has paid his service tax liability or not , please explain, thanks and regards

AI Summary

Service Receivers Not Required to Verify Provider's Tax Payment; Must Pay Under Reverse Charge Mechanism A query was raised about whether there is a circular or notification requiring a service receiver to verify if a service provider has paid their service tax liability. Respondents clarified that no such circular exists. Under the reverse charge mechanism, the service receiver must pay their portion of the service tax regardless of the provider's payment status. It was also noted that there is no Cenvat rule granting the right to check the provider's tax payment, though contractual agreements can include such provisions. The discussion concluded with agreement on the responses provided.