Tangible Good Service Tax paid by Receipient

[jagadesh kumar bhojanapalli Kumar]

X (service Provider) company is registered under service tax &  providing Equipment/machinery with operators/staff & maintenance all his account except diesel oil  to Y Company (Service Receipient) .

Service tax is paying by 'Y' company through challan in Bank   instead of service provider is acceptable or not as per provisions of service tax rules.

Y  company can avail above service tax credit or not. (Y Company has been registered under Central Excise & Service Tax -both). 

regards,

jagadesh 

AI Summary

Service tax payment by recipient treated as payment on behalf of provider; credit requires provider invoice and STC deposit.
Service tax liability lies with the service provider; recipient payments are acceptable if deposited quoting the provider's STC and treated as payment on behalf of the provider. To avail Cenvat credit the provider must issue an invoice showing service tax and the deposit must be recorded under the provider's STC; without such invoice and accounting the recipient cannot claim credit and will be treated merely as a tenderer.