service tax liability
This query is : Resolved
22 May 2008
following is the bill raised by me
job charges=200000
+service tax=24000
total 224000
now, my client has deducted in total 10000/-and verbally told that 2000/- being deducted for negligence and 8000/-being deducted for the third party i.e the ultimate customer being dissatisfied.my client has paid 190000/ and availed cenvat credit of rs.24000/-.should i pay s.t on 190000/ or 200000/.please advice.
job charges=200000
+service tax=24000
total 224000
now, my client has deducted in total 10000/-and verbally told that 2000/- being deducted for negligence and 8000/-being deducted for the third party i.e the ultimate customer being dissatisfied.my client has paid 190000/ and availed cenvat credit of rs.24000/-.should i pay s.t on 190000/ or 200000/.please advice.
CA. Vineet Grover
(Expert)
23 May 2008
Hi Sharad,
Service tax is calculated on payment and not on accrual basis.
As Rs.190000 has been remitted,, service atx should be calculated on that amount only.
Rgds/
Vineet
Service tax is calculated on payment and not on accrual basis.
As Rs.190000 has been remitted,, service atx should be calculated on that amount only.
Rgds/
Vineet
Shyam Lal Naik
(Expert)
23 May 2008
Dear Sir,
How can you say that your client has availed the full cenvat credit?
How can you say that your client has availed the full cenvat credit?
23 May 2008
FIRST OF ALL SERV. TAX SHALL BE COLLECTED @12.36%INCL. EDU.CESS @3%.
NOW YOU ARE LIABLE TO PAY EDU. CESS WITH PENAL INTEREST OF 12% P.A.
AS SRI VINEET RIGHTLY STATED ,SERV.TAX LIABILITY IS ON AMOUNT COLLECTED .SO YOU ARE LIABLE TO PAY SERV. TAX ON RS 190000 COLLECTED BY YOU.
YOUR CLEINT CAN ACCORDINGLY TAKE CENVAT CREDIT ON WHAT IS CHARGED BY YOU.
R.V.RAO
NOW YOU ARE LIABLE TO PAY EDU. CESS WITH PENAL INTEREST OF 12% P.A.
AS SRI VINEET RIGHTLY STATED ,SERV.TAX LIABILITY IS ON AMOUNT COLLECTED .SO YOU ARE LIABLE TO PAY SERV. TAX ON RS 190000 COLLECTED BY YOU.
YOUR CLEINT CAN ACCORDINGLY TAKE CENVAT CREDIT ON WHAT IS CHARGED BY YOU.
R.V.RAO
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