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chunu subba (govt service)     09 December 2015

Service tax

can a service provider be allowed to pay service tax and allowed it to be reimbursed later on. have come up before a clause in the agreement which allows service provider/ consultant engineer to pay service tax before and allow to reimburse later on from the government?

m confused.


 1 Replies

K.S.NAVEEN KUMAR   14 December 2015

As per the Point of Taxation Rules, 2011, service tax liability even arises on accrual basis if any of the criteria specified in the rules are fulfilled. In such a case the tax would be remitted to the Government and later on claimed from the service recipient.

Secondly, a service provider, who is an exporter may first pay service tax on his output service and then claim rebate. Sometimes such exporters are required to pay tax first to their input service providers and then claim it as refund from the Government.

In all probability you would have encountered such scenarios.





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