applicable of service tax

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sai kumar (Querist)
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26 July 2016 F.Y.2015-16 my gross receipts from painting and servicing of bikes crossed 20,00,000 ...what i have to pay as taxes sir?is i need to pay WCT on services with 30 percente abatement ?and give clarity whethi have to pay any VAT

CA AJAY KUMAR AGRAWAL

CA AJAY KUMAR AGRAWAL (Expert)
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26 July 2016 You must be using paint, nut bolts, spare parts & other items in painting & repairing the motor vehicle. The above work is covered in Works Contract Service & it is a declared service u/s 66E. It applies to movable & immovable assets, both. In my view you have to pay Service Tax on 70% value & Vat on 30% (as the work is not original work but repair & maintenance on old assets). Registration under Service Tax is required when turnover / gross receipt crosses Rs 9 Lakhs & liability to collect & pay arises when it crosses Rs 10 Lakhs. Liability for tax in only on amount in excess of Rs 10 Lakhs.

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sai kumar

sai kumar (Querist)
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26 July 2016 thnq sir....but in a.y.2014-15 i filed my return by showing 3,60,000 net profit which was calulated by taking 26,30,000 as gross receipts for which we don't have bills...is there any problem sir...plz clarify

CA AJAY KUMAR AGRAWAL

CA AJAY KUMAR AGRAWAL (Expert)
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27 July 2016 It is not clear how you keep account (in absence of bills etc) & filed return. I think you are talking of filing ST3 (Service Tax Return) during Financial Year 2014-15. There must be many parties which must be deducting TDS on your payment. Such payment department can verify from your 26AS. In case amount as per 26AS is more than what you have shown in ST3, it will be a problem. It is good that you have deposited service tax & filed return but department can ask for accounts / bills, in that case it may be a problem to you.

sai kumar

sai kumar (Querist)
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27 July 2016 no sir i prepared for bank loan by showing that amount as gross receipts but i filed itr 1 with income from other sources 3,70,000 (i.e.net profit)..

sai kumar

sai kumar (Querist)
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28 July 2016 thnq sir i got clarification... thnq very much..

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