Service Tax Query Modified

i m agree with y  sir ji................

i m agree with u  sir ji................

Originally posted by : anant singhal
	They are ready to pay 90,000 that includes the tax that I have quoted. So I should just not make any changes and keep the money with me ? I will apply for service tax no. when I reach 9 lacs. If you are a CA, i don't mind hiring you or anyone else here for consulting :)

You can consider your Rs. 90000 as amount received including service tax. Back calculate it. And received the remaining amount which you want to recover from students and pay service tax on that amount also.

Sorry Pinky did not understand "Back calculate it. And received the remaining amount which you want to recover from students and pay service tax on that amount also."

that means 90000/110.3*10.3= 8404 will be your service tax liability and remaining 81596 will be treated as your income and now if your students agree to pay the amount of service tax seperately then you can receive Rs. 9270 from them on account of service tax.

This is my personal view...

Agreed with Pinky..upto 10 lakh keep the money with urself and after that you will have two option either to increase the receipt i.e Rs 90,000/- plus 10.30% (ST) on it or back calculate the receipt as said by pinky and discharge your liability...

no prob if the service provider charge 90000 and like to pay service tax from his own pocket ( when applicable) then whats prob?

he is neither evading service tax liability, nor making any default under rules, but he wants to charge uniform tariff irrespective of fact service tax chargable or not, in this case he will be liable to pay the service tax from his own pocket. without charging the students.

As it is mentioned earlier Rs.90000 is inclusive of service tax. So he would be able to enjoy the basic exemption  of Rs.10 lacs and after that he would be paying service tax by reverse calculation as discussed above.
 

the first 10 lakhs in your case shall be covered within the meaning of SSp(small service provider) on such receipty as stated by other members trully you will not be required to pay s.tax however from your next bill i.e. from Rs. 10,00,001 and onwards @ rate of 10.30% 

Dear friends, kindly correct me the service provider has already collected 90000 fees from students in which he has already collected ST of 10.3% then my question if he has already collected ST from students then how can he retain the ST , he needs to pay the ST to govt.

Then howcome is the 10 lakhs exemption limit in force? we are conducting a course and collecting service tax from students, our income is not even 5 lakhs ,but in course fee we mention that we collect ST , so are we liable to pay govt the service tax collected from course fees or we can keep the ST with us until we cross 10 lakhs. Kindly clarfiy i feel once you collect ST you need to deposit it , irrespective of whether your limit crosses or not, because whenever you collect tax from someone you are not supposed to keep it with you , you are liable to pay to govt. kindly advise and correct me if wrong.