CA.Mkhandelwal (Practice) (156 Points)
06 October 2008As we know that service tax is to be deposit after receipt of invoice amount. Some times it happens that at the time of receipt certain amount has been deducted by the payer and the receiver has to issue credit note as discount paid to the payer. My question is that whether we have to deposit the service tax on the entire bill amount or only the receipt amount. If on the receipt amount than where to show the difference in service tax billed and service tax recovered in the return form.
CA V. Mohanakrishnan
(Chartered Accountant)
(401 Points)
Replied 06 October 2008
the amount on which service tax is paid is in the first part wherein only the money received is shown, which is also confirmed with the GAR 7
the later part provides the bill raised which in itself reconciles as to the amount still pending to be received
Madhukar N Hiregange
(Chartered Accountant)
(38934 Points)
Replied 08 October 2008
The payment of service tax is only on the amount recived. The amount recievd would be said to be inclusive of ST. After the backward calculation ( 100/ 112.36) x 12.36% the amountmaybe paid. On discount no ST need be paid.
mandeep kaur
(student)
(35 Points)
Replied 08 October 2008
service tax is the tax payable on receipt basis. the person liable for payment of Service tax just has to pay service tax on the amount actually received against the bill whether in advance, or in future at any time.
CA.Mkhandelwal
(Practice)
(156 Points)
Replied 20 October 2008
| Originally posted by :Madhukar N Hiregange | ||
| " | The payment of service tax is only on the amount recived. The amount recievd would be said to be inclusive of ST. After the backward calculation ( 100/ 112.36) x 12.36% the amountmaybe paid. On discount no ST need be paid. | " |
Thanks. In st return where we will show the discount, otherwise amount yet to be recived will not be tally with the books of accounts.
vishwanatham gandla
(employement)
(45 Points)
Replied 18 November 2008
If service tax is not to be paid on the balance amount of bill unpaid( which was given as discount), what are the entries to be passed to score off the service tax liablity?
CAclubindia
