Stanley Ravi (Consultant Conservation) (32 Points)
25 March 2011We are a travel agency, at times we run short of vehicles, so we request our sub-vendors to provide services.
We collect Service Tax from our clients, and pay to the Government, our sub-vendor also has raised a bill.
He also has to pay Service Tax, now how and from whom does he collect the Service Tax?
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 25 March 2011
| Originally posted by : Stanley Ravi | ||
 |
We are a travel agency, at times we run short of vehicles, so we request our sub-vendors to provide services. We collect Service Tax from our clients, and pay to the Government, our sub-vendor also has raised a bill. He also has to pay Service Tax, now how and from whom does he collect the Service Tax? |
 |
sub vendors has raised a bill to you, with service tax, you have to take input credit of service tax so paid and set off from liability of your service tax payable.
Stanley Ravi
(Consultant Conservation)
(32 Points)
Replied 25 March 2011
Can you give us an example of what "input credit of service tax so paid" means.
Pankaj Arora
(Learner)
(3134 Points)
Replied 25 March 2011
f sub-contractor charges bill of Rs.110.30 including service tax than you could take input credit of service tax Rs.10.30
RENGARAJ R.K
(ADVOCATE)
(7557 Points)
Replied 21 December 2011
Further to pankaj arora's example, the input credit of Rs.10.30/- will have to be reduced from the out put service tax liability of say Rs.5000.30/- So, the net tax liability for the cab-owner is rs.4990/-.
rengaraj r.k
GST Live Certification Course (39th Batch) - April 2024 (Weekend Batch) (With Certificate)
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
CAclubindia
