Service Tax Liability

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 September 2010 Hi
Respected Members

Suppose If i a m service provider and i raised the bill of Rs. 50000/- and my debtors give me 20000 out of which 2000 TDS deducted and 1000 deducted as Security Deposit.

Then at what amount service tax should be paid whether on 20000 or net payment received i.e 20000-2000-1000 = 17000/-.

Thanks

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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16 September 2010 duplication.
https://www.caclubindia.com/experts/service-tax-485750.asp

service tax to be paid on Rs.20000/-

Dayal

Dayal (Expert)
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17 September 2010 Irrespective of any deductions, service tax is payable on gross amount charged to the service recepient.

The exceptions are refundable deposit for which a clause is necessary in the agreement/arrangement, else taxable

TDS even if deducted will form a part of taxable services except in case of renting of immovable property.

Therefore service tax to be paid on Rs.19000/-

BALU V

BALU V (Expert)
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17 September 2010 ST is payable on the receipt of money. So ST payable on Rs. 19000/-. Since TDS is nothing but deferred income it has to be grossed up though not received.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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17 September 2010 Rs. 1000 is kept as security deposit , not deducted by party. If he pay full amount, then you have to pay Rs.1000 to him security deposit,
HEnce you are receiving Rs. 20000 against your bill. Hence Service tax to be paid on Rs. 20000/-

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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17 September 2010 The view of Mr Dayal seems to be correct.

Praveen Sharma

Praveen Sharma (Expert)
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18 September 2010 Whether S. Tax levied by provider on the security deposits.

S. tax would be paid on Rs. 19,000/- (the amount received)

Regards
P

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