Reverse Charge Machenism

[Mridul Sethi]

Sir,

Pls let me know, if by  mistake service provider charges full service tax in his bill(means pays our liability also) under reverse charge machenism, then our liablity occurs or not, also pls provide its supporting notification/ circular.

Mridul Sethi

[YAGAY andSUN]

If service provider, mistakenly, charges the entire service tax from the service recipient then please don't pay the service tax fully.  Pay only the partial charges which the service provider is liable to pay and you should pay your share under reverse charge mechanism.

In Law and tax matters, you can not provide supporting and notification for each and every matter but most of the issues get clarified while discussing the same.

AI Summary

Clarification on Reverse Charge Mechanism: Pay Only Your Share, Not Full Tax, Despite Service Provider's Mistake. A query was raised regarding the reverse charge mechanism in service tax, asking if a service provider mistakenly charges the full tax, including the recipient's liability. The response advised not to pay the full amount; instead, the recipient should pay only their share as per the reverse charge mechanism. It was noted that while specific notifications or circulars may not always be available for every issue, most matters are clarified through discussion.