8. Who is liable to pay service tax?

8.1
In most of the cases, service provider, i.e., person who is providing taxable service is liable to pay service tax and, hence, the consulting engineer or firm or body corporate providing services is liable for service tax. However, in few cases, exceptions have been made and the service receiver is made to liable to pay service tax. By Finance Act, 1999 it has been provided that if a person providing service is non-resident and does not have address or place of business in India, service tax is payable by person receiving taxable service in India [Rule 2(1)(d)(iv)]. The amendment has come in effect from 11 May 1999. In such a case, person receiving the service will also have to register.

8.2
If a person pays service tax, which he was not liable to pay in the first place, he is entitled for a refund provided refund claim has been filed within the prescribed time[1].
[1] CCE vs Ambuja Cement Eastern Ltd;