LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Chandramohan (Manager)     07 November 2014

Query on service tax

As per the Order of District Collector a man power Recruitment agency has to Collect ESI,PF,Serviice TAx from the Service Recipient. but the service provider (man power agent ) has not levied the same and not collected from the service receipent for more thatn three years.


He (the agent) a registered service provider neither collected  the service tax nor made the payment to Govt. nor he filed the ST Return for more than three years.


S T dept made a ride and found that he is continuos defaluter. his turnover was more that 3 crores for many years.


the dept raised a demand including penality of Rs. 1.48 Crores.


NOw he is insiting the Clients ( the Service Receipents) to pay the service tax .



Can he ask the same?


are his clients( the Service Receipents) duty bod to pay the service tax amount?


 11 Replies

Vinod maheshwari (Advocate)     08 November 2014

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


                                                                Vinod maheshwari,Advocate

                                                                                   Varanasi ( U.P.)


Chandramohan (Manager)     08 November 2014

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

Chandramohan (Manager)     08 November 2014

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? 

Vinod maheshwari (Advocate)     09 November 2014

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

1 Like

Chandramohan (Manager)     09 November 2014

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

T. Kalaiselvan, Advocate (Advocate)     12 November 2014

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.

1 Like

Chandramohan (Manager)     14 November 2014

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

Adv k . mahesh (advocate)     17 November 2014

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 

1 Like

T. Kalaiselvan, Advocate (Advocate)     17 November 2014

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

1 Like

Chandramohan (Manager)     17 November 2014

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

T. Kalaiselvan, Advocate (Advocate)     17 November 2014

You are welcome for your appreciations.

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register