Primary Liability to pay service tax lies on the service provider. The service provider collects the service tax from the service receiver and is liable to take registration with the Service Tax Department and complete all the formalities in respect of deposit and
filing return of service tax.
The Budget 2012 proposes to shift this liability in certain cases to the service receiver.
Presently, the service receiver has to discharge service tax liability only in a couple of case like import of services and goods transport agency. However, it is now proposed to shift the liability to the service receiver in a number of other cases also. The proposals are enumerated below:
SN
|
Nature of Service
|
To be paid by Service Provider
|
To be paid by Service Receiver
|
1
|
Insurance Agent
|
0%
|
100%
|
2
|
Goods Transport Agency
|
0%
|
100%
|
3
|
Sponsorship Service
|
0%
|
100%
|
4
|
Arbitral Tribunal
|
0%
|
100%
|
5
|
Individual Advocate
|
0%
|
100%
|
6
|
Business Support by Government
|
0%
|
100%
|
7
|
Supply of Manpower by Individual/ HUF/ Firm of AOP
|
75%
|
25%
|
8
|
Works Contracts by Individual/ HUF/ Firm of AOP
|
50%
|
50%
|
9
|
Renting of Motor Vehicle by Individual/ HUF/ Firm of AOP
-With Abatement –
- Without Abatement -
|
0%
60%
|
100%
40%
|
w.e.f – April 1, 2012.
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