calculation of service tax

This query is : Resolved

anita (Querist)
Follow

17 March 2009 Please immediately send me a formula for calculating of service tax if pary has paid total amount without mentioning service tax. or if party has given excess service tax how to calculate it.

CA LOKESH KASAT, FCA, M.Com

CA LOKESH KASAT, FCA, M.Com (Expert)
Follow

17 March 2009 1. when payment is made by party Service Tax will depend on invoiced issued to him, and service tax payable will be the amount mentioned in Invoice. In case Payment received is after some discounting, then you have to modify the bill and apply the following formula:
Service tax payable =
Amount received * rate of ST /(100 + rate of ST

2. in case excess sevice tax is received, return it back to party or deposit the same to ST Department.