Transport Operator

[MITSUI PRIME ADVANCED]

Dear Sir,

As per notification no 30/2012 dt 20.06.2012 at presently taxi operator not aware  this type of law and charge Service Tax in bill and after tax on 40% of Bill amount @ 12.36% so total tax is 4.944% w.e.f. 01.07.2012 payable by service provider but our compay paid to service provider because Service tax add in his bill. so comany is not deposited to central goverment account but paid to service provider agaisnt his bill. Please tell me your valuable suguation related to this point if service provider chage service tax on bill and company paid total bill not any deduction

please clear legal position in this matter.

Regards

Arjun Sachdeva

[YAGAY andSUN]

You are still liable to pay off your service tax liabilit under partial reverse charge mechanism.  Pay it off early to show your bonafide.

AI Summary

Partial reverse charge liability: recipient must remit service tax even if supplier billed and was paid in full. Partial reverse charge liability applies to taxi/transport services from 01.07.2012: where a supplier bills service tax and the recipient pays the bill in full, the recipient nonetheless remains liable to discharge the service tax due under the partial reverse charge mechanism and must remit that liability to the government; prompt payment is recommended to demonstrate bona fides.