Hello All,
We are a webcast service provider and we bill our client for the services. Say the bill was 10000/- inclusive of service tax of 10.3% . They pay us 9000/- by deducting 10% TDS. Is this the right way. We are a new firm with 2 partners and have a service tax no. If they are right on their part deducting TDS than how much service tax we need to deposit in the government a/c as service tax charged. Can anyone suggest us this.
TDS is to be deducted on your Bills, your clients are correct on their side. But your Service Tax Liability will be the amount charged by you as Service Tax in the bill raised on your client. You can take Service Tax Input Credit of the Services utilised by you. For eg : Telephone Exps.
Service Tax Liability = Service Tax charged Less Input Service Tax.
Regards,
Devendra Kulkarni
Hi Shyam
Why do you charge service tax without a service tax registration. you have a Basic Exemption only if your turnover is above 10L, you will need to register and then charge service tax.
CAclubindia
