Query on service tax

 It depend upon the terms of agreement  between Service Provider and Service receipents.

                                                                Vinod maheshwari,Advocate

                                                                                   Varanasi ( U.P.)

if the agreement is silent in this ragard what to do?

IF we refer to section 67(2) of the Finance act 1994 if the service provider does not charge the amount of service tax in the lnvaoice, what ever consideration received by the service provider is inclusive of service tax. means the service receipient in no case bound to pay amount of service tax not levied in the invoice at the time of issuing the invoice.   going by the above provision and referring to the agreement which is silent regarding levy and collection of sevice tax. the service receipient has not paid any amount to the service provider.

is the action of the service receipient correct? 

then service provider can not recover the service tax liability from service recipient by force of law.

Thank you very much for your advice sir...

Actually the case is in our favor (service receiver)

we wanted the opinion of an advocate in writing. thats why i posted the query here.

Thanks once again

The service tax not collected by the service provider separately through the invoice/bills, cannot be enforced now as per the provisions of the Finance act, the matter will be deemed to have been collected.  The service provider can make provisions for service tax in the future  cases.

does it mean that he can recover the same in the future invoicing?

means it should be mentioned clearly in the invoice/bills about the service tax and how much they are charging and from now on in future bills it can be mentioned clearly 

The service tax on future invoices will be for that particular services only and will not have any retrospective effect or recovery.

Thank you one and all for your valuable suggessions ....

You are welcome for your appreciations.