22 May 2008
following is the bill raised by me job charges=200000 +service tax=24000 total 224000 now, my client has deducted in total 10000/-and verbally told that 2000/- being deducted for negligence and 8000/-being deducted for the third party i.e the ultimate customer being dissatisfied.my client has paid 190000/ and availed cenvat credit of rs.24000/-.should i pay s.t on 190000/ or 200000/.please advice.
23 May 2008
FIRST OF ALL SERV. TAX SHALL BE COLLECTED @12.36%INCL. EDU.CESS @3%. NOW YOU ARE LIABLE TO PAY EDU. CESS WITH PENAL INTEREST OF 12% P.A. AS SRI VINEET RIGHTLY STATED ,SERV.TAX LIABILITY IS ON AMOUNT COLLECTED .SO YOU ARE LIABLE TO PAY SERV. TAX ON RS 190000 COLLECTED BY YOU. YOUR CLEINT CAN ACCORDINGLY TAKE CENVAT CREDIT ON WHAT IS CHARGED BY YOU. R.V.RAO