Hi,
Suppose i provide a service for10,000.
Then Service tax = 10000*10.3%=1030
So the total billed amount to be paid by the client should be10,000+ 1030= 11,030
But what if the client pays only 10,000. And not the tax amount. What should be the Service tax amount now. And how it is calculated.(let me know the formula).
Thanks.
yas your client have to pay rs 11030/-
supose he pays only Rs 10000/- then you have todeposit service tax of Rs 933.82 (10000/110.3*10.3)
s tax can not be round up on every bill.
u can round it up at the time of payment on whole basis.
your amount received will be assumed as including service tax
The amount of service tax in your case for the partial payment has to be done through reverse working method in such a way that it is assumed amount collected towards taxable services is inclusive of service tax as per the workings specified by Mr Biswaranjan.
Thanks and Regards,
Manoj B. Gavali
CAclubindia
