05 September 2013
you have to show it as 12.36% and tick the applicable box for abatement notification and then for the taxable turnover the tax should be calculated @12.36%
As per Experts instruction we have mention abatement notification 26/2012 & sl no. 6 and also taxable amount shown 12.36%. Amount comes 12% Rs. 74571/-, 2% Rs. 1491/- & 1% Rs. 746/-.
But when we click Validate Return & Generate XML following message shows:
"Do you want to submit return and generate the XML with following errors:
Service Tax payable (Rs. 74571) does not match with the Tax paid (Rs. 44743)
EDU Cess payable (Rs. 1491) does not match with the Tax paid (Rs. 895)
SHE Cess payable (Rs. 746) does not match with the tax paid (Rs. 447)"
We have tax paid 7.2%, 2% and 1% on Taxable amount (Rs. 621425)
14 July 2024
It seems there is a discrepancy between the Service Tax, Education Cess, and Secondary Higher Education Cess amounts you have calculated as payable and the amounts you have actually paid. Here’s how you can address this issue:
### Understanding the Issue:
1. **Taxable Amount Calculation**: You've calculated the taxable amount based on abatement notification 26/2012 at different rates (12%, 2%, and 1%).
2. **Tax Paid**: You've paid Service Tax at 7.2%, Education Cess at 2%, and Secondary Higher Education Cess at 1% on the taxable amount of Rs. 621,425.
3. **Discrepancy**: The error message indicates that the amounts you've calculated as payable (Rs. 74,571 for Service Tax, Rs. 1,491 for Education Cess, and Rs. 746 for Secondary Higher Education Cess) do not match the amounts you've actually paid (Rs. 44,743 for Service Tax, Rs. 895 for Education Cess, and Rs. 447 for SHE Cess).
### Steps to Resolve:
1. **Verify Calculations**: Double-check your calculations for the payable amounts: - Ensure that you have correctly applied the abatement notification 26/2012 and calculated the correct percentages for Service Tax, Education Cess, and SHE Cess. - Verify that these calculations match the taxable amount correctly.
2. **Review Tax Paid**: Review the payments you've made: - Check if the tax paid amounts (7.2% for Service Tax, 2% for Education Cess, and 1% for SHE Cess) were applied correctly to the taxable amount of Rs. 621,425. - Confirm that the tax payments match the amounts reported in your returns accurately.
3. **Resolve the Discrepancy**: If there is a clear discrepancy between the amounts payable and the amounts paid, you may need to adjust your calculations or verify the data entry in your return form.
### Action to Take:
- **Yes or No**: When prompted with the message "Do you want to submit return and generate the XML with following errors," you should **not click Yes** until you have resolved the discrepancies. Submitting the return with errors could lead to further complications or penalties.
- **Correction Process**: Make necessary corrections in your return form to ensure that the taxable amount, tax payable, and tax paid figures align correctly. Adjust the amounts accordingly based on your calculations and payments.
### Conclusion:
It’s crucial to reconcile the figures for Service Tax, Education Cess, and SHE Cess payable with what you have actually paid. Ensure accuracy in your calculations and data entry to avoid errors when validating and generating the XML file for submission. If you are unsure or need further assistance, consider consulting a tax advisor or expert who can review your calculations and help you rectify any discrepancies effectively.
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