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Service tax calculation

Anand (Accountant) (60 Points)

10 July 2008

Dear Sir & frinds,

i have one doubt in service tax calcultaion, we billed 1000+123.6=1123.6 in case we received 700/- part payment how should i treat this one and it is after deduction of TDS 10.3% and any formula is there please tell me

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34 Replies

P. BASKAR (TAX CONSULTANT) (66 Points)
Replied 10 July 2008

There is no specific formula for calculation Service tax. Every one has maintained their own style. But your doubt has concerned, If you maintained your service tax account in receipt basis, you can calculate the tax when you received the payment not at the time of bill is rais.

Anand (Accountant) (60 Points)
Replied 11 July 2008

Thank u very much your valuable reply, one more thing in my question how much service tax amount i want to pay when i received 700/-

Thanking you

1 Like

Udaya Panigrahi (EMPLOYEE) (20 Points)
Replied 11 July 2008

There is no specific formula for calulating of S.Tax and TDS. In this case you have to pay the sevice tax on the amount realised by you. e.g. service tax = (700*12.36/112.36)=77. Amount after S.Tax =(700*100/112.36)=623. e.g.(700-77).

TDS should be deducted on the amount after deducting service tax. Because the service tax is not the income of the assessee.

Ram Avtar Singh (Nagari Sultanpur U.P.Delhi) (14477 Points)
Replied 11 July 2008

I agree with Mr. Uday

Brajesh (manufacturing) (73 Points)
Replied 11 July 2008

Can service tax liability be discharged on accrual basis ? Will this not be treated as advance service tax paid ...?

(Guest)

Dear sir if a Laboor supplier is paid Rs 11,00,000 by a company for labour job and the wages paid to the Labour by him is Rs 3,50000 in a year . what will be the service tax liability for the Labour supplier . please explain how.

OFFICESELVA (Service) (515 Points)
Replied 02 August 2008

Service tax should be paid on Rs.11,00,000/- as ST should be paid on the Gross amount received from the customer.

(Guest)

Dear Sir,

Whether service tax is calculated monthly, quarterly or yearly?

OFFICESELVA (Service) (515 Points)
Replied 12 August 2008

It depends. Propriotor concern and Partnership firms should pay every quarter. Private Ltd., and Ltd., companies every month.

(Guest)

Hello Sir,

Could u tell me that for labour supplier service tax is payble at only on the receipt amount,

what i mean that if billing amount is suppose 1000rs including service tax then we recieve 977.34 rs after deduction of 2.266% TDS then what service tax is payed on which amount.