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Service tax to be paid

Service Tax (Legacy) 1381 views 3 replies

Hi My client is an advertising agency.They a raise abill as under


Gross amount 1000


Service tax      18.6


However service receiver while paying pay less amount and according pay the service tax as under


Goss amount  900


Service tax    16.74.


 


Hence in the above case what amount of service tax should my clien pay and what record he needs to maintain.


 


 

Replies (3)
Service tax is calculated on the basis of amount received. Therefore you pay service tax for the amount received i.e Rs.900 & Service tax amount Rs.16.4.
how to keep a track of service tax billed and collected in accounting in the above scenario
Difference Amount Tfr to Discount Account (i.e Service tax Billed - Service Tax Collected)


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