Service tax on extra amount received

No, any amount received in relation to a service provided, whether at the time of providing service or at any later time, will be considered as part of assessable value & tax will have to be paid accordingly.

Extra amount is liable to service tax if the same has nexus with the service provided.

Originally posted by : CA Prabhat Gupta
	No, any amount received in relation to a service provided, whether at the time of providing service or at any later time, will be considered as part of assessable value & tax will have to be paid accordingly.

Agree with both...

As per the provisions, gross amount charged ffrom service recipeient is the taxable whether it is single bill or thro extra amount by way of debit note. The extra amount is in relation to the orginal taxable service invoice.

rengaraj r.k

Thanks for all replies.

One more qurey related to this

if service provider deposited service tax on advance to govt later on service is not provided or agreement of service  is cancelled and entire advance amount returend to client

Question is do service provider is allowed to take credit of service tax already deposited to govt. if yes there is any time limit for use that amount of credit.

Thanks in advance

Ritesh

Yes Ritesh,

Please refer to Rule 6(3) of Service Tax Rules, 1994 as amended.

It says that," (3) Where an assessee has paid to the credit of Central Government service tax in respect of a taxable service, which is not so provided by him either wholly or partially for any reason, the assessee may adjust the excess service tax so paid by him (calculated on a pro rata basis) against his service tax liability for the subsequent period, if the assessee has refunded the value of taxable service and the service tax thereon to the person from whom it was received."

Hence, as per above provisions of Service Tax Rules, 1994 you can utilise the service tax so deposited against the service tax liability for the subsequent period.

Thanks prabhat

Please let me confirmed is there is any time period for utilization of  such credit.

Thanks