Can The User of Service Be Liable to Pay Service Tax?

The concept of service tax is generally implies that service provider is liable to pay service tax . However , there are some express provision in service tax laws which lays onus of paying service tax on the receiver of service. Therefore, in following cases, the ‘person’ who receives the taxable service is liable to pay Service Tax:

(i) Insurance Company pays service tax for service given by agents following under Insurance Auxiliary Service .
(ii) In respect of the taxable services provided by a Goods Transport Agency for transport of goods by road, the person who pays or is liable to pay freight should pay Service Tax, if the consignor or consignee falls under any of the seven categories viz. (a) a factory (b) a company (c) a corporation (d) a society (e) a co-operative society (f) a registered dealer of excisable goods (g) a body corporate or a partnership firm
(iii) In respect of the Business auxiliary services provided by Mutual Fund Distributors in relation to distribution of Mutual Fund, the Service Tax is to be paid by the Mutual Fund or the Asset Management Company receiving such service.
(iv) The body corporate or firm, which receives the sponsorship service pays service tax
(v) As per Sec. 68(2) and Sec.66A of the Act read with Rule 2(1)(d) of the Service Tax Rules, 1994) in case any taxable service provided or to be provided by any person from a country other than India and received by any person in India, the person receiving such service should pay service tax.