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Tds and service tax from a service provider point of view

Queries 324 views 5 replies

Urgent help :

Suppose I have received an advance of Rs. 100,000 (total contract value 1,000,000)on which the client has deducted TDS of 10,000 and paid me Rs. 90,000/-. Whether i should pay service tax on advance receipt on Rs. 100,000? or Rs. 90,000?

Replies (5)

Dear manab,

Yes service tax has to be service provider on advance receipts also 

As per POT rules, if the payment is received before the date of issue of invoice then date of receipt will be the date on which liability arises

 

Dear Ajay,

I understand that ST will be charged on the date of receipt, but my only concern is on what amount should i remit the service tax on Rs. 100000/- or Rs. 90000/- from my above mentioned example

0n 1 lakh 

SERVICE TAX IS PAYABLE ON THE GROSS AMOUNT RECEIVED FOR PROVIDING THE SERVICE, HENCE SERVICE TAX IS TO BE REMITTED  Rs. 100000/-
 

Thank you Mr. Ajay and Mr. Irshad


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