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service tax proble help me plzzz

Varsha (Accountant) (564 Points)

05 September 2009

plz tell me

1]shec @ 1% lieved on service tax u/s 95 of finance act ..............

which finance act is this-

2004 or 2007

2]if service tax not collected nd service rendered than tax is to be paid ?

3]service tax main adjustment karni hai dan what limit in it have for :

individual or patnership firm

and

company or huf?

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3 Replies

M. N. JHA (CA) (8316 Points)
Replied 05 September 2009

1) Secoundry and Higher Education Cess is applicable From F.Act. 2007

2)Yes,If you eligible for paying you will liable for service tax whether you collect or not. In this case your recived amount against the service which you provide then amount recived is deemed including service tax.,and then service tax was calculated.

3) I am unable to understand your third question.

Jagdish Trivedi (Practicing CA) (41 Points)
Replied 06 September 2009

1. Education Cess leveied by Finance Act (No.2), 2004.

2. In case you did not collect service tax then u need to gross up the amount considering it as amount received is inclusive of service tax amount:

suppose u r raising bill of Rs.112.36/- (inclusive of Service Tax @ 12% + EC @ 2% + SHEC @ 1%). Now client is paying u only Rs.90/-, then consider this as inclusive amount. bifurcate dis amount as Rs.80.10/- for service fees and Rs.9.90/- towards service tax liability.

3. though ur 3 quest not so cleared, I understood dat u want to make service tax planning and want to know threshold limits under each instances:

there is no such criteria defined under service tax as given under income tax law. however there is an exemption from paying and recovering tax upto Rs.10 lakhs service fees, once it exceeds u need to pay tax as it is. further when ur sevice fees crosses rs.9 lakhs or ur input service dist. then compulsorily u need to get registerd ur self with the authority. However if it does not exceeds this limit then reg. is optional.

No other criteria defined for the term "person"