Service tax liability under reverse charge mechanism

[Asked by Guest]

Dear Sir,

We are a Pvt Ltd Company one individual provide service to us with material which is falls under works contract service.

Service provider not charge the service tax on his invoice due to any reason but we as a company we paid the service tax under reverse charge mechanism our % i.e 50 % .

My question is if service provider not charge the service tax on his invoice in that case as a compnay we are lible to pay the service on total service tax that is 50% of service receiver as well as service provider also ?

Regards

Swapneswar Muduli

AI Summary

Partial reverse charge: recipient must remit its half service tax liability; provider's obligation remains separate.
Under the partial reverse charge mechanism for works contract services, the recipient must pay its allocated half of service tax on the gross amount charged by the service provider regardless of whether the provider charged or paid tax; the provider's obligation to remit its own share remains separate and enforceable by the tax authorities.