Service tax payment

one of my Clint. his last year turnover was above 10 lakhs. now he pay service tax. but was not geting servicetax from one party. can he need to pay that amount him self ?
Replies (3)

No, If none of his client pays service tax to him. Then as per law it is assumed that gross receipts from cleint includes service tax part also. So, the entire amount will be divided by 14% and the resulting figure will be assued asa taxable amount. and service tax will be charged on that amount.

For example :-

if he receives amount of Rs. 100.00 from a customer. then taxable amount on which service tax is to be charged will be Rs. 87.72 (100 / 1.14) and service tax payable will be  Rs. 12.28.

Your party make payment to you or not, but if once you have charged service tax on your bill, you have to pay this amount to the GOI ( in case of direcet charge). If provided service comes under Reverse charge, you need not to be worry about service tax payment.

I agree with Mr. Niraj Kumar sinha

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 03 October 2026
Accountant

A P Lodha and Associates

Jalna

B.Com

View Details
Company
ARTICLESHIP 23 October 2026
Articled Trainee

J Y & CO

Hyderabad

CA Inter

View Details
Company
14 October 2026
Accountant

Rize.farm

Bengaluru

B.Com

View Details
Company
ARTICLESHIP 23 October 2026
CA Articleship / Article Assistant

M N Rao & Associates LLP

Vijayawada

CA Inter

View Details
Company
ARTICLESHIP 08 October 2026
ARTICLE TRAINEE

S.B.G. & CO. CHARTERED ACCOUNTANTS

New Delhi

CA Inter

View Details
Company
23 October 2026
Sr. Accountant

SANKARAN & KRISHNAN

New Delhi

B.Com

View Details
Company
16 October 2026
CA article trainee

Zerdi & Co. Chartered Accountants

Pune

CA Inter

View Details
Company
19 October 2026
Accountant

Jari Saree Center

New Delhi

Others

View Details