Jyothis (Article) (1127 Points)
05 January 2016Invoice Total -Rs.1,00,000
Service Tax - Rs.14,000
Service reciever paid only Rs.75,000.
Invoice was issued before Payment,
Since service reciever was paying service tax on reciept basis,
Can he show service value as = Rs.75,000*100/114=65,790 & Service Tax as =9211 being 14% of Rs.65,790.
Deepak
(Chartered Accountant)
(254 Points)
Replied 23 January 2016
No. Service Tax needs to be paid on total value of service provided for which the invoice has been raised but not on the basis of amount received from service receiver.
Jyothis
(Article)
(1127 Points)
Replied 23 January 2016
https://www.simpletaxindia.net/2012/03/service-tax-on-receipt-50-lakh-point-of.H T M L#axzz3y3QdTfBc
Deepak
(Chartered Accountant)
(254 Points)
Replied 23 January 2016
Dear Jyothis
your question needs a correction. As it was said that service receiver is paying ST on receipt basis???? only service provider will have the option to pay ST on receipt basis if the aggregate of taxable services provided by him from one or more premises in the last financial year does not exceed fifty lakhs.
Jyothis
(Article)
(1127 Points)
Replied 24 January 2016
My doubt is when a firm is paying serive tax on receipt basis,(Service provider)
Are they liable to pay service tax on entire invoice value or service tax on amount received alone.
Say invoice value -Rs.1 lacs & received only Rs.75,000 even after raising inoive.
Ravi Kumar Somani
(Indirect Taxes Specialization)
(3893 Points)
Replied 24 January 2016
Yes, Jyothis you are correct in the above interpretation and if the aggregate value of the taxable service has not exceeded Rs. 50 lakhs in the previous financial year then service tax can be paid on receipt basis based on the cum- tax calculation. Further it needs to be properly disclosed in teh ST-3 returns.
Regards,
Ravi Kumar Somani
Jyothis
(Article)
(1127 Points)
Replied 24 January 2016
Where it is to be disclosed in return.
We normally,show adjusted turnover.
Say Rs.50,000 is only received for Rs.1 lacs invoice then,
Turnover as Rs.50k*100/114.5=43,668 & ST as balance of Receipt = Rs.6,331.
Deepak
(Chartered Accountant)
(254 Points)
Replied 25 January 2016
Dear Jyothis
In the ST-3 return there is seperate column given for it i.e., "Column B1.2 Amount received in advance for services for which bills/invoices/challans or any other documents have not been issued". You can disclose the amount in that column.
Regards,
Deepak Tawania
CAclubindia
