Payment of service tax

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This query is : Resolved

SUSHIL (Querist)
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07 August 2011 Sir,

I am running a Store of UNINOR GSM Service provider in West Bengal.
Kindly advice me on the following issues :

(1) In the fiscal 2010 - 2011, I paid a total Service Tax of nearly Rs. 67,000/-.

(2) Am I liable to pay Service Tax in the Fiscal 2011 - 2012, because (a) I'm well below the Exemtion Limit of 10lacs as per prevous fiscal & (2) I'm confident that I will not be able to exceed Business Turnover of 10Lacs in the current fiscal.

(3) What will happen if I surrender my Service tax Number / surrender my Service Tax certificate with Tax Authorities.

(4) What is the Procedure of Paying Service Tax. Whether I will pay it or the Company Reimburses it first & then I pay the Tax.

(5) UNINOR, West Bengal has done a very clever thing. They have not reimbursed us the Tax amount by DD (2010 - 2011). Instead they have created a account in their company itself (ERP a/c) & gives us a type of Credit Note.Thus we have to take cash out of our bank & pay Tax.
As a result the Service Tax Deptt. is not beleiving in this type of account even on showing them the Company's Stament & Mails.

What should I do?

Regards.
XYZ.

CA Ashwani Agarwal

CA Ashwani Agarwal (Expert)
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07 August 2011 (2) If you are collecting service tax from your clients then you are liable to pay the same. If you are not collecting it, then no need to pay it.

CA Ashwani Agarwal

CA Ashwani Agarwal (Expert)
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07 August 2011 (3) You can do the same only if you dont have any liability as mentioned in point 2 above.

CA Ashwani Agarwal

CA Ashwani Agarwal (Expert)
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07 August 2011 (4). For individuals, service tax has to be paid quarterly. It is charged either when you receive the payment of you make the invoice which ever is earlier.

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