Question

Name any one example where payment of service tax is the liability of the service recipient and not the provider

Answer 1

Much focus under GST has been given the goods, but the government has realised that the transition provisions are inadequate, especially for the service tax cases.

One such problem is how to report the service tax and take credit of the same that was payable during the pre-GST period, but paid during the GST regime. For the services under reverse charge made during June, the payment of service tax was technically due on July 6 and strictly speaking it could not be reported in the last service tax return period comprising April to June. This issue plagued all taxpayers.

Now the Government has come out with a circular, which is raising more questions than it is trying to answer