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Service tax not received from the receipient of service

357 views 1 replies

Ganesh

CA Practice

91 Points Posted on 09 February 2014

Hi All,

Please note that one of my client provides services to his customers and he is liable to collect and pay Service tax.

Two of his customers refuse to pay service tax. What do we do in this situation? Does my client deposit service tax from his resources or should be exclude service tax in the bill for this 2 customers. Moreover , service tax cannot be grossed up and billed as the customers are well aware of the basic price and they won't accept the same..

Please respond.

Thanking you in advance.

Best Regards.

K.Ganesh

Replies (1)

Manuraj

Business

211 Points Posted on 09 February 2014

Dear in this case you have only one option whatever the amount your client has been received from his clients such amount shall be deemed to be inclusive of s.tax. always remember that the liability to remit the s tax in the credit of cg always lie in the head of so however some exception is also there .but your client is duty bounded to discharge his s tax liability whether collected or not whether charge or not . For calculation if amount of stax you shall follow the same Amt collected from client/112.36 and then multiply by 12.36 such amount is your s.tax liability.