29 April 2010
My client collectiong 12% service tax from mhis clients and showing in his books as 10% and paying to govt 10% and remaining 2% adding to professional charges means showing as revenue. ex:collecting fees as professional charges 50000 service tax 12% 6000 But showing in books as professional charges 50500 service tax 10% 5500 And paying to govt Rs.5500 can he do like this. is it valid as per law
29 April 2010
He cannot do like this. It is very dangerous for him. Tommorow he has to repay with heavy interest and penatly. He cannot collect more and even if he collects be mistake the same has to be remitted to the government or returned to the client.
29 April 2010
It is big trouble to your client in future. Since the actual rate of ST is 10.3% you cannot charge more than that and also paying to the Govt Only 10 %. please ask them to pay with interst for avoiding penalty and other consequnces
CAclubindia
