Notice received Service tax on labour supply

[Xyz Wbc]

I was a proprietor in 2016-17 and supplied a manpower for house keeping, gardening, nurses and doctors etc to one private limited hospital. I registered for service tax also but not filed returns due to RCM. I received a notice in 2021 from service tax for enquiry about my turnover from IT return. I replied that since I am proprietor and hospital is Pvt Ltd I am not liable to pay service tax.The matter was stopped but again in 2024 I received a notice from Kolhapur office I submitted my bills which was not in invoice format, Bills was like all person name salary and gross total pay and 5% service charge was added, TDS was deducted @1% and rest amount was transferred to my bank.I also submitted bank statement which was confirmed the payment as per bills Now service tax officer want agreement and ledger of hospital Hospital is not providing any details. I also don't remember that agreement was signed or not?.

What to do weather I am liable to pay service tax.

If agreement is exist and charges inclusive all taxes is written in agreement what will happen.

Please advise

AI Summary

Manpower Service Provider Faces Service Tax Notice; Reverse Charge Mechanism Complicates Liability and Proof Burden A proprietor who supplied manpower services to a private hospital in 2016-17 received a service tax notice in 2021 and again in 2024. Despite being registered for service tax, they did not file returns due to the Reverse Charge Mechanism (RCM). The service tax officer requested documentation, including agreements and ledgers, which the hospital did not provide. Experts on the forum advised that the service recipient is liable for service tax under RCM, and the burden of proof lies with the service provider. If the agreement included taxes, it complicates proving non-collection of service tax. Legal advice was recommended.