Is service tax still applicable ?

Queries 737 views 11 replies

       Wishing Everyone  Merry Christmas and a very joyous new year

I have some critical queries for Service Tax ------

1) If I give invoice to customer , but customer did not pay  >>> in such case still is is mandatory for me to Pay service tax on stipulated date ? just because invoice is been raised ?

2) I want to shift from manual Bill book to computer printed invoices. Will dept will have some objection ? Is there any guidelines for how to maintain invoices? At my end it is highly unorganized . Some invoices cancelled in between so no.s are skipped etc.

3) How can I verify bi annual ST returns have been accepted by dept ?

Thank You

Regards

varad

Replies (11)
1. Yes, the service tax is still payable. 2. The department will have no objection in maintaining printed invoices. Rule 4A of service tax rules,1994 is required to be fulfilled which prescribes certain requirements on an invoice which are as under : A. Name and address of service provider B. Name and address of service recipient C. Registration number of service provider D. Descripttion of service E. Separate disclosure of service tax F. Rate of service tax G. Authentication of the invoice by authorized signatory. If it is a computer generated invoice, digital signature is allowed. 3. You can verify bi annual returns by logging into aces portal. Select view ST 3
Wo Wo Wo Harshalji you are great. I am really flattened by your nice gesture.thank you so much for resolving all my queries most efficiently. Wishing you all the Best. Varad Sent from Asus Zenfone

Yes varad Indeed Mr.Harshalji's reply has answered some of my old queries.

Thanks Harshalji

yes ..it is accural basis..... if return the invoice u can eligible for like return of goods treatment.
yes ..it is accural basis..... if return the invoice u can eligible for like return of goods treatment.
yes ..it is accural basis..... if return the invoice u can eligible for like return of goods treatment.
yes ..it is accural basis..... if return the invoice u can eligible for like return of goods treatment.

It is strange rule.

If we did not earn a penny but only on the ground that Service tax Invoice is made , we are supposed to pay to dept. Also a big problem with ST is time when invoice is made.

Suppose it is made in start of quarter (  5 aprl /  5 july / 5 oct) and customer gave payment after 60 days still we dont need to pay ST from our pocket.On the other hand if invoice is made at the end of quarter then for 2 months ST is paid from ourr pocket.

Hope GST will resolve allthese issues.

Varad, this is all matter of balancing. raising an invoice in starting of quarter will benefit you & raising invoice in the end of quarter will keep you on losing side. But when you averge these conditions then its a no profit no loss Situation.

Hi Anuj

Raising Invoice is absolutely not in our hand , it purely depends on when customer will give PO / order. Is it OK to cancel /not show such invoice to dept.

Though this is not ethical solution.

Hello Varad,

There are several Indirect Tax planning experts who will suggest you various ethical solution to plan your service tax liability. For this purpose contact such experts.


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