Collection of ST on non taxable services

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This query is : Resolved

Suresh Chandar (Querist)

12 October 2009 Treatment for collection of Service TAx for non taxable services..?

Incase of payment to govt. it will be adjusted against future liability. In such case it is an income to the service provider.

How the income should be treated...?

Whether to repay the customer...?

sunny bansal

sunny bansal (Expert)

12 October 2009 IF U HAVE COLLECT ANY THING FROM THE CUSTOMER AS SERVICE TAX OVER AND ABOVE THE ACTUAL LIABLITY THEN U HAVE DEPOSIT THE SAME TO THE GOVERNMENT AS SOON AS POSSIBLE OTHER WISE PENALTIES WILL ATTRACT . IT WILL BE NOT BE ADJUSTED AGAINST THE FUTURE LIABILITY.IT IS THE EXCESS AMOUNT RECEIVED BY OVER AND ABOVE THE TAX LIABILTY.

CA Suresh Choudhary

CA Suresh Choudhary (Expert)

12 October 2009 Irrespective of fact whether the service was taxable or not, if you had collected the service tax from the customer in the form of Service tax then its your liabilty that the should be deposited to the government.

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