If client does not pay full amount of invoice value.....then what amount service tax is to be paid.??????/
eg:-
100
+12.36=112.36 (invoice)
But actual payment:
112.36-20=92.36....20 deducted for LD charges......Then on what amount service tax is deposited
INVOICE VALUE
or
NET RECIEPT.
??????????????????
your receipts are includiong of service taxes so you will calculate the reversed mechanisum & pay the service tax
yes reverse mechanism will work
you have to pay the full amount as the amount deducted is for LD charge which is different from the invoice amount.
The income (amount received including TDS) shoult be treated as cum-tax. Tax should be calculated accondingly. Further, taxable value+tax calculated should be equal to the amounts received.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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CAclubindia
