Can Service tax with-hold by end user?

Share
Share This Thread
  1. Datanal

    Datanal New Member

    Dear sir,
    I would like to know relevant rules for the following situation:
    A small scale sub-dealer was purchased Microsoft software licenses from a dealer for amount X plus VAT1 plus service tax ST1 on amount X. Dealer invoice contains sub-dealer PAN & Service tax registration number. Then sub-dealer sold same software without modifying to a end-user(govt department) at a price Y plus applicable VAT2 plus applicable service tax ST2 on amount Y. The govt. Department I.e. End-user withheld the service tax amount ST2 stating the sub-dealer should remit the entire amount ST2 to govt. Account and produce the challan for releasing with-hold service amount ST2. As this is multilevel transaction, sub-dealer has already paid the service tax amount of ST1 to dealer and (ST2 - ST1) to govt account, in this situation will you guide me for the following:
    1. Whether the end-user can insist for remittance of ST2 amount to govt. Account before release of withheld amount? Relevant rules please.

    2. If not, on which rules sub-dealer ask the end-user to released the withheld amount?
    3. Any advice to get release of withheld amount.

    With regards,
    Datanal GN
     
  2. Datanal

    Datanal New Member

    Will any expert have solution to above problem?
     
Draft saved Draft deleted
Loading...
Similar Threads Forum Date
Services provided by SEZ Developer to SEZ Units GST Feb 8, 2018
AVAILABILITY OF INPUT TAX CREDIT TO SERVICE PROVIDER GST Jan 12, 2018
GST for SEO and Digital Marketing services to Foreign Clients GST Dec 27, 2017
What goods and services are exempt? GST Dec 18, 2017
Is GST charged on exported goods and services? GST Dec 18, 2017