How much payable the service tax

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Dear all Friends

I have small dout please clarified.

Example;

January month total service tax recived      @ 10.3%   (Purchase)                  350000

In this month service tax charges @ 10.3% (Sales)                                           600000

how much payable the service tax for the month

Please clarfied in this proble

Thanking you

Replies (5)

First of all service tax is chargeable on service provided and not purchase and sale.

Assuming your purcahse and sale is of service.

Service tax is payable on receipt basis i. e. service tax to be paid only in respect of the amount collected and credit for service tax paid can be taken on actual payment of expenses. So your answer will depend on actual receipt and payment.

If both payment & receipt received as per your problem service tax payable Rs. 250,000/- i. e. 600000 - 350000

i am assuming that the above mentioned figures are the gross value & not service tax. Based on this assumption the calculation will be as under:

The taxable value shall be Rs. 600000 - Rs. 350000 i.e. Rs. 250000.

Service Tax on it shall be 10..30% on the above value = Rs. 25750/-

Also service tax payment depends upon the category of service provider. In case you are individual then service tax tro be paid quarterly. In case of company tax to be paid monthly.

Your liability to deposit Service tax is on the basis of receipt.

With effect from 13-05-2005, the value of taxable service is to be computed on the basis of actual receipt of amounts, which will include i) amount received in advance ii)amount received during the course iii)amount received after the completion of providing service.


The amount of receipt is important in respect of service rendered, You said only service charged and not amount received in respect of service charged

If your question can be more specific then i am sure u will get more appropriate answers from the members of the site.

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