Tax liabilities

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This query is : Resolved

Kapil Jain (Querist)

07 August 2010 If a am a Service Provider and make a bill of 10,000 with service tax 1030 now party paid only
1. 1000
2.2000
3.5000
What is my tax liability.

I think what is my tax liability the same would be allowe to other to take credit.

Aditya Maheshwari

Aditya Maheshwari (Expert)

07 August 2010 You will have to gross up the receipt and pay tax on the balance.

So if you receive Rs. 1000/- your income will be Rs. 907/- and ST payable Rs. 93/-.

Kapil Jain

Kapil Jain (Querist)

07 August 2010 And what about the credit to be taken by the payer.

Aditya Maheshwari

Aditya Maheshwari (Expert)

07 August 2010 He will also take credit proportionately.

Message likes : 1 times

Murtaza I Bhagat

Murtaza I Bhagat (Expert)

07 August 2010 Yes agreed to adityaji,

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)

07 August 2010 Agreed... Just divide the amount received by 1.103 to arrive at your service tax liability. & credit is available only of the paid tax.

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