If a Contractor does not Deduct Service Tax from the Principal Employer,who is liable for Penalty,Contractor or Principal Employer.Kindly reply with legal notification
From India, New Delhi
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2From India, New Delhi
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Your query is not very clear. Kindly narrate the same with an example.
Example:
ABC Enterprises supplies 10 laborers to XYZ Pvt Ltd with an annual turnover of Rs. 9 Lakhs. The same company (ABC Enterprises) supplies 10 laborers to EFG Pvt Ltd, with an annual turnover of Rs. 9 lakhs. Both companies are in different locations and not related to each other. ABC Enterprises does not charge service tax from each company as it has not crossed the 10 lakh limit. However, ABC Enterprises actually has a turnover of Rs 18 lakhs. In this situation, who is liable in case the contractor receives a notice for the recovery of service tax?
Regards,
Ramakant
From India, New Delhi
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Example:
ABC Enterprises supplies 10 laborers to XYZ Pvt Ltd with an annual turnover of Rs. 9 Lakhs. The same company (ABC Enterprises) supplies 10 laborers to EFG Pvt Ltd, with an annual turnover of Rs. 9 lakhs. Both companies are in different locations and not related to each other. ABC Enterprises does not charge service tax from each company as it has not crossed the 10 lakh limit. However, ABC Enterprises actually has a turnover of Rs 18 lakhs. In this situation, who is liable in case the contractor receives a notice for the recovery of service tax?
Regards,
Ramakant
From India, New Delhi
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Tax Liability.doc
Service Tax.pdf