Hi,
On recent FY-2012-13 budget government has released circular on service tax like below.
12.36% service tax as per government.
1. Receiver has to pay the 60% serivice tax to government i.e 7.41%
2. Again Receiver will pay the 40% service tax to provider 4.95%. i.e total 12.36% receiver paid to government & provider.
3. Now, Receiver will pay the 40% service tax to government .
How government will tally both this amounts.
Eg. Invoice Amount Rs. 5000
Service tax is 12.36%
1. Receiver paid the service tax Rs.370.5 on invoice amount to government
2. Receiver paid remaining service tax amount to provider ie. 247.5
3. But, Provider Rs.247.5 not paid to government.
How government will trace this amount i.e 247.5 which was not received from provider.
Regards,
Madhu
CAclubindia
