Circular or Notification No

[Asked by Guest]

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

[PAWAN KUMAR]

Dear Sir,

As per my view, no such circular or notification which provide to ensure the payment of service tax liability of any service provider.

[Rajagopalan Ranganathan]

Sir,

Under reverse charge mechanism whether service provider has paid the Service Tax or not, service receiver has to discharge his portion of liability of payment of service tax as prescribed.

Dear All, Is there any Cenvat rule where for a ailment of Cenvat credit on Input services whether we as a service receiver has a right to check whether service provider has paid service tax liability or not, please explain, thanks and regards

[YAGAY and SUN]

Dear Sandesh,

There is no such provision in the Service Tax Laws. However, through agreement/contract/MOUs you can incorporate such clause to inherit a right to check/verify the amount of service tax paid by service provider under PRCM Notification.

Regards

Neelam Taneja - Executive Consultant

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

[Mahir S]

Yes,very well answered above.

AI Summary

Reverse charge mechanism requires the service receiver to pay tax regardless of the provider's tax payment status.
No statutory circular or Cenvat provision requires a service receiver to verify a provider's payment of service tax; under the reverse charge mechanism the receiver must independently discharge prescribed tax liability, and verification rights, if desired, must be created contractually rather than deriving from tax law.