Circular or Notification No

[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.

[Guest]

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 andSUN]

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

NeelamTaneja- 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.