MEANING OF ACTUALLY AND GENUINELY PAID BY THE CONTRACTOR

[RAM AVTAR]

In most of the tender clause says ' However , in respect of SERVICE TAX , same shall be PAID by the contractor to the concerned department on demand and it will be REIMBURSED TO HIM by the Engineer in Charge after satisfying that IT HAS BEEN actully and genuinely paid by the contractor

In case of a company tax deposited through epayment, partial reverse charge and CENVAT.

Whether CENVAT credit of bill of sub contractor (either in partial reverse charge for full Credit) will also treated as service tax paid by contractor actually and genuinely

AI Summary

Clarifying 'Actually and Genuinely Paid' in Service Tax: Cash vs. CENVAT and Reverse Charge Implications A discussion on a forum addresses the interpretation of 'actually and genuinely paid' in service tax clauses within contracts. A contractor is responsible for paying service tax, which is reimbursed upon verification of payment. The discussion highlights the importance of understanding 'actual' and 'genuine,' emphasizing honesty and factual payment. Payment through CENVAT is equated to cash payment, provided it meets the CENVAT Credit Rules. In government contracts, service tax is reimbursed upon submission of certified challans. The applicability of cash payment in partial reverse charge scenarios is confirmed, impacting subcontractors under reverse charge mechanism (RCM).