our company business is a hotel business, our company is collecting Service Tax @ 10.30 % on following catering services during the financial year 2011-12 1. Hotel Accomidation service 2. Mandap keeper services 3 . Restaraunt services we know that there is a abatement of 50 %, 40 % ,70 % on the above Respective category services while making service tax payment to the government we considering the abatement on the above category of services and paying service Tax @ 5.15 % ,6.18 %,3.09% respectively
my query regarding the service Tax is “ Is it compulsory that the service tax amount collected from the customer is remitted to the government (or) not ?
25 April 2012
Yes. Any amount collect from customer showing as service tax should be credited to Central government account otherwise interest liabilities with penalty would be attracted.
CAclubindia
