Remittence of Service Tax

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This query is : Resolved

venkata ravikumar padmanabhuni (Querist)

29 August 2010 I want konw that the remittance of service tax, which was paid on Pvt Ltd company, but the taxable receipts received and deposited in Partnership firm.

The name of the Companies :
1. M/s. Maruthi & Co (partner ship firm)
2. M/s. Maruthi & Co Pvt Ltd.,
(management of both above cos are same)

Actually the taxable income generated in pvt ltd company only, but cheques received in the name of partnership firm. By mistake thost cheques deposited in partnership firm account, which firm is not working currently and also firm has not submited the closer letter officially.
and service tax payment made in Pvt Ltd co & returns has been filed for FY 2009-10.

As per Form 26AS TDS also remitted by the customers in name of Partner Ship Firm for the above said financial year.

In the above case, We need the clear clarification about the remittance of Service Tax.

CA PRAMOD SARAOGI

CA PRAMOD SARAOGI (Expert)

29 August 2010 How could the customer issue TDS certificate in the name of the firm when the services are rendered by the company and the bills for services provided are raised by the company.
Service Tax would be levied on the company but the liability to pay the services tax arises only when the payment is received. Since tha payment is made to the firm you have to pass the journal entry in the books of the company by debiting the Firm A/c and crediting the Customer account.The paasing of the journal entry would be deemed as receipt of the payment by the company.
So far as TDS is concerned you have to inform/advise the customer to revised the E-TDS return by replacing the Companies name in place of the Firm name.

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