Who will liable to pay service tax? cs executive tax law free notes
Every service provider providing service taxable isliable to pay service tax. In exceptional casein special case service tax ispaid by the receiver of the service this is also known as “Reverse Charge”
Under rule2 under service tax rule 1992 followingservice have been include in reverse charge.
1. The generaland life insurance service. The person carrying on insurable business. He isliable to pay Service tax andnot the insurance agent.
2. Incase ofmutual fundservice the mutual fund management is liable to pay service tax andnot the agent.
3. In case ofservice received in india from a place outside india or by a person outsideindia the receiver of the service will pay the tax.
4. Forsponsorship service the companywho receivers willpay the tax and not one whoact as an agent for that company.
5. In specifiedcases consigner and consignee paying freight charges are liable to pay servicetax on behalf of transport company.