Arrears on service tax

Every person providing taxable services is liable to collect & pay the service tax. U have to get urself registered with the Central Excise Department within 30 days of being liable.(From ST1) Ignorance of law ("SERVICE TAX ISSUES") can not be condoned.IE it is deemed that u r aware of the law. As per my understanding and interpretation you have to pay service tax (at earliest)out of ur pocket or getting it reimbursed from ur client (either ways). However since it was not by reason of fraud, collusion or any wilful mis-statement or suppression of facts. Penalties wont be attracted .

One option is claiming service tax portion from client . Incase, you are unable to claim service tax  portion from the client, the gross amount charged by you can be taken as inclusive of Service tax and service tax can be calculated by making reverse calculations.

Example: if you have charged Rs.10,000 ( omitting to include service tax) ,service tax will be arrived as follows:

Value of taxable service 10000/(1+10.3%)= 9066

Service tax                                                        =   934

Total value(inc service tax)                            = 10000

So you need to pay service tax of Rs.934 to Dept in case option 1 is not feasible

How to file service tax returns of an organisation which is registered in F.Y.2010-11, but collected services tax  amount from 2006 in F.Y.2010-11 and paid to government during 2010-11. Whether we need to file a seperate return manually for each half year commencing from F.Y.2006-07 ? or can we show them as an arrears in F.Y.2010-11 and file e returns?

Originally posted by : Anil
	How to file service tax returns of an organisation which is registered in F.Y.2010-11, but collected services tax  amount from 2006 in F.Y.2010-11 and paid to government during 2010-11. Whether we need to file a seperate return manually for each half year commencing from F.Y.2006-07 ? or can we show them as an arrears in F.Y.2010-11 and file e returns?

any specific reason to get registered in 2010 and pay from 2006? as if the liability was formed in 2006 then the company had to get registered , collect and pay from 2006, 

 

if there is any specific reason then please share, as in absence of such reason the reply would not be proper.

The client is registered on 31.03.11 now he was suppose to file return on 30.09.2011 and also on 31.12.2011. He has still not filed his first return. Can he file the return of March -12 showing figures in Arrears of earlier quaters. There is no cloum to show fees or income for arrears what is availabe or understood is that only tax amount could be wrttien as arrears. Can anyone guide me on these issues.

You have to file return for the earlier periods