IN CONSTRUCTION WORK BUSINESS .....
AFTER THE NEW RULE OF 50% OF S.TAX PAYABLE BY RECEIVER AND REST BY PROVIDER IN THIS SYSTEM IF SERVICE PROVIDER A PARTENERSHIP FIRM PAYS S.TAX AS 100 % AND ALSO SERVICE RECEIVER COMPANY ALSO PAYS S.TAX FOR THE SAME WORK FOR 50 % , SO THE SAME WORK AND S.TAX PAID IS 150 %. SO WHO CAN GET CREDIT FOR THIS EXCESS PAYMENT & HOW ?????
REPLY ASAP................
I think, Service provider will get the credit(refund) of extra 50% which he paid bcz he should pay only 50% as per the amendement of Stax or he can setoff the same from making futher Stax payment.
He can adjust the excess service tax paid by him in next payment due!!
I suppose the service reciver is a company and hence liable for 50% liability of Service Tax. Now, if you have shown full 100% service tax in your invoice, than you cannot adjust the tax liability. The entire collection of tax must be paid to the credit of central govt. However, the service reciver can take cenvat on the same on the basis of invoice.
BHUPINDER SHAH AND COMPANY
New Delhi
CA Inter
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Boutique Investment Bank & Transaction Advisory Firm
Gurgaon
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