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Payment of Service Tax

Nagabushan (Manager - Accounts) (58 Points)

18 December 2009

Hi All, Pl help in paying the Service Tax. Inv. Basic Value is Rs.14,49,685, 10.3% ST Rs. 1,49,318, Total Inv Value Rs.15,99,003

Payment details: Inv. Value Rs.15,99,003 Less: TDS Rs. 1,81,165, Net Credited to A/c. Rs.14,17,838.

Thanks in Advance

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Nagabushan (Manager - Accounts) (58 Points)
Replied 18 December 2009

Originally posted by : Nagabushan
	Hi All, Pl help in paying the Service Tax. Inv. Basic Value is Rs.14,49,685, 10.3% ST Rs. 1,49,318, Total Inv Value Rs.15,99,003 Payment details: Inv. Value Rs.15,99,003 Less: TDS Rs. 1,81,165, Net Credited to A/c. Rs.14,17,838. Please let me know on which amount should i pay service tax. Is it on Rs.14,49,685/- basic inv. value or Rs.14,17,838/- receipt value. Thanks in Advance

Vivek Jarial (Student) (272 Points)
Replied 18 December 2009

You have to deposit service tax of Rs. 149318/- (Less) any service tax input credit taken. service tax is to be deposite on basic value not on received amount.

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Manoj BG (Tax Professional and in Service) (1795 Points)
Replied 18 December 2009

Whatever vivek said is absolutely right. You have to deposit service tax of Rs. 149318/- (Less) any service tax paid on input services (which is called as CENVAT Credit). Service tax is to be deposited on invoice value on the receipt basis. However, if the short amount received and the shortfall is on account of other than TDS, then the service tax is to calculated by following formula :

= Amount Received/ 110.30 X 10.30

The resultant amount is to be paid to the government after set off of CENVAT credit

1 Like

Vivek Jarial (Student) (272 Points)
Replied 18 December 2009

No Mr. Manoj B Gavali your formula is wrong.......

it is =(Net amout Received /100-TDSx100)x10.3%

Vivek Jarial (Student) (272 Points)
Replied 18 December 2009

No Mr. Manoj B Gavali your formula is wrong.......

it is =[Net amout Received /100-Rate of TDS)x100]/100+10.3x100

Nagabushan (Manager - Accounts) (58 Points)
Replied 18 December 2009

Thanks Vivek,

Is the below calculation correct.

1417838 / 88.67 x 100 = 15,99,005/- x 10.3% = 1,64,697/-. But I have charged the client Rs.1,49,318/-. Why should we pay more ST.

Vivek Jarial (Student) (272 Points)
Replied 18 December 2009

Sroy its is some mistake..

No Mr. Manoj B Gavali your formula is wrong.......

it is =[Net amout Received /100-Rate of TDS)x100]/100+10.3x100

NARENDER PAWAR (CA final Student) (337 Points)
Replied 19 December 2009

YOU SHOULD DEPOSITE SERVICE TAX RS. 149318 BUT IF U HAVE PAID SERVICE TAX ON INPUT SERVICE THAN U TAKE CENVAT CREDIT OF SERVICE TAX ON INPUT SERVICES. IF U HAVE NOT PAID SEVICE TAX ON INPUT SERVICES THAN U HAVE TO PAID SERVICE TAX RS. 149318 ON RECEIPTS BASIS

CA Balram Sharma (CA) (839 Points)
Replied 19 December 2009

If you charge the Rs.15,99,003 from your client, than your treatment is correct

Bharat Khurana (Student) (153 Points)
Replied 19 December 2009

you will have to deposit whole of the service tax because tds is a deduction from account it will be treated as a receipt

Vipin Singh (Accountant) (28 Points)
Replied 19 December 2009

Dear you should pay Service Tax Rs. 1,49,318/- that you have collected on your net Rent value. If you have paid input service tax then you can take credit against your service tax collection of Rs. 149318/-, otherwise you must pay Rs. 149318/-.