Who Should Pay the Service Tax: The HR Consultant or the Client?

Kindly let me know who should pay the Service Taxes - the Service Provider or the Service Receiver?

I am working with an HR consultant. In this scenario, should the service taxes be paid by us (the consultant) or by the client (where we placed our candidate)?

Please reply ASAP.

Please read the concerned act and rules carefully. Any way, the service tax will be collected like sales tax and deposited with the central government in normal circumstances. Here, the sale is of services and not goods; hence, the service tax. This is a very basic fundamental; otherwise, it is a vast subject.

Dear Vijaya,

If you are working as a consultant through any third party, then if that third party raises Service Tax in their bill, then the only "Third Party" is liable to pay. If you are working independently and the client pays you the service tax in your monthly payments, then you are liable to pay service tax. In case of any query, please do call.

As an HR consultant, your services are subject to service tax. It is your responsibility to remit the service tax to the government in accordance with the rules. You can pass on this charge to your clients when invoicing them.

Hope this information is helpful.

Thanks & Regards,
Avika
avika.kapoor@kapgrow.com
09310270884

Dear Vijaya,

It is to be borne by the service receiver. Example: If you have raised an invoice to the party along with the service tax and received the payment as per the agreement, then you will have to deposit the service tax. Please note that the service tax is based on receiving. If the party has not paid the service tax, then you don't need to deposit the same.

Regards,
Jagdish Pathak

Hi Everyone,

I have a question on consultancy service tax. Is this a fixed tax or does it vary from company to company?

Regards, Parmod 8826169278