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Service tax calculation

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Querist : Anonymous

Querist : Anonymous (Querist)

19 February 2015 Dear Sir,

If in December Month, If our company purchase Service with service tax 12.36% is more than Sales Service with service tax 12.36%. Ultimately Which is we paid extra service tax.
& next Month i.e. in Jan month We sell service with Service Tax more than purchase Then we can do calculate Service tax computation of combine 2 months.

Rajesh Sharma

Rajesh Sharma (Expert)

21 February 2015 Hi, in effect what you are saying is correct. However, the correct methodology is as follow;

December 2013-
Computation of liability = Output liability (Say Rs. 100) - Cenvat Credit for the month (Rs. 150). So you carry forward Cenvat balance of Rs. 50.

January 2014 -
Computation of liability = Output liability (Say Rs. 100) - Cenvat Credit (opening bal Rs. 50 + Cenvat for the month 25)= Output liability of Rs. 25 to be paid on or before 6th February.

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Querist : Anonymous

Querist : Anonymous (Querist)

21 February 2015 Thanks for valuble & useful answer Mr. Rajesh Sharma

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