Service tax

we provide service to our party.

we charge service tax in the bill.

now party make ON ACCOUNT PAYMENT to us after DEDUCTING TDS .

MY QUESTION is 

should service tax be paid on CASH PAYMENT + TDS or otherwise

Replies (3)

Yes, you have to pay service tax on the Total Receipt i.e. Cash/Bank Receipt +TDS, because you are claiming your TDS while filing Income Tax Return 

You need to pay on the gross amount ( receipt+tds) as TDS is also considered as Payment.

Service Tax is to be paid on the gross value of taxable service which is charged by a

Service Tax assessee for providing a taxable service. Income tax deducted at source is

includible in the charged amount. Therefore, service Tax is payable on the gross amount

including the amount of Income Tax deducted at source also.

Dear

Service tax will be paid on the groos amount received (Amount +TDS) from the party.

Example:

Bill Raised = Rs. 100000.00 + 10300.00 (ST)= 110300.00

If payment is realized after deduction of TDS, then you have to deposit ST=10300.00

Regards

Ajay Garg

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