Service tax reimbursement
msk
(Querist) 11 July 2013
This query is : Resolved
Sir,
Recently as per new amendments in Service Tax from July 2012. With the introduction of Reverse charge Mechanism , the liability to pay service tax has been shifted from Service provider to Service recipient to the extent of some percentage.Further it is the responsibility of service recipient to make payment of service tax as receiver of services directly to Central Government treasury on monthly basis.
Now the question is, if service provider makes the payment of his balance share of service tax to the Central Govt and submits the challans to Service Recipient for Reimbursement, then whether it is compulsory for Service Recipient to reimburse the payment to Service provider.
Please guide in the matter.
Anirudh
(Expert) 12 July 2013
You appear to be totally confused about the whole concept.
Please tell your fact situation, so that one can answer your query.
