Payment of service tax recd in advance
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
02 June 2012
LETS SAY I HAVE RECD RS 20 LACS AS ADVANCE TOWARDS LABOUR WORK CONTRACT/AGREEMENT. MY EMPLOYER IS ASKING ME TO PAY SERVICE TAX. NOW WHAT IS THE RIGHT WAY TO PAY IT..WHETHER IT SHOULD BE 12.36% ST ON 20 LACS OR 12.36% ST ON 17,79,993/-(20 LACS112.36%*100)????PLS ADVICE
02 June 2012
It depends on the terms of contract. If the contract is exclusive of service tax then advisable to pay on 20 lacs. Because when you raise the final invoice e it would be difficult to claim diff. Service taxand you may land up paying interest. You can raise the invoice. Charging the service tax as you need to raise invoice in any case as per point of taxation rules within 14 days of occureence of the event.being provision of service or receiving of payment. I find this as a resolution to your inquiry.
02 June 2012
It depends on the terms of contract. If the contract is exclusive of service tax then advisable to pay on 20 lacs. Because when you raise the final invoice e it would be difficult to claim diff. Service taxand you may land up paying interest. You can raise the invoice. Charging the service tax as you need to raise invoice in any case as per point of taxation rules within 14 days of occureence of the event.being provision of service or receiving of payment. I find this as a resolution to your inquiry.
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Querist : Anonymous
Querist :
Anonymous
(Querist)
02 June 2012
dear mr dayal,,pls advice me in other way....lets say total bill after completion of job comes to 25 lacs inclusive of service tax>>.than should i pay(liable to pay) differential service tax only(between earlier paid 12.36% on 20 lacs & S.TAx as per invoice raised by me??????
03 June 2012
If total bill is inclusive then you can opt to pay service tax on 1779993 against receipt of 20,00,000 The next invoice that you raise for balance consideration of 500,000 your service tax liability would be on 448,998 being 55,002. Your total service tax liability of Rs. 220007+55002 gets rightfully discharged
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