Diff. account procedure
This query is : Resolved
03 July 2010
Dear Sir/Madam
My self i m consultant Engineer, i have taken service tax reg. no. but presently my busines approx. 8-9 lac per anum & i invoice raise to customer as consultancy without service tax so pls. clear my following querries
1. I have S.Tax reg. No. but my business below servcie tax limit then wil i do service tax return deposit ??
2. If Yes then is this possible i follow in Accounting Marcantile basis but i want service tax deposited when i recd amount from customer (cash base)
3. because we raise to bill customer but sometimes customer not to pay full payment he deduct 25 to 30% amount from bill against excess rate or whatever
so pls. clear my querry
Thnx n regards
My self i m consultant Engineer, i have taken service tax reg. no. but presently my busines approx. 8-9 lac per anum & i invoice raise to customer as consultancy without service tax so pls. clear my following querries
1. I have S.Tax reg. No. but my business below servcie tax limit then wil i do service tax return deposit ??
2. If Yes then is this possible i follow in Accounting Marcantile basis but i want service tax deposited when i recd amount from customer (cash base)
3. because we raise to bill customer but sometimes customer not to pay full payment he deduct 25 to 30% amount from bill against excess rate or whatever
so pls. clear my querry
Thnx n regards
03 July 2010
DEAR SIR,
In terms of Section 69 of the Finance Act, 1994 (Chapter V) read with rule 4 of the
Service Tax Rules, 1994 -
Every person who has provided a taxable service of value exceeding Rs. 9 lakhs, in
The preceding financial year, is required to register with the Central Excise or
Service Tax office having jurisdiction over the premises or office of such service
Provider.
In case a recipient is liable to pay service tax (Please see question No. 1.2) he also
has to obtain registration.
The ‘Input Service Distributors’ are also required to register them as per Notfn. No.
26/2005-ST dated 07.06.2005 as amended.
If a person who is liable to pay Service Tax fails to pay service tax, he shall pay in addition to
such tax and interest in accordance with the provisions of Section 75 of the Act, a penalty
13
which shall not be less than Rs.200/- for every day during which such failure continues or @2%
of such tax per month, whichever is higher. However, the penalty amount payable shall not
exceed the amount of Service Tax payable. (Refer to Section 76 of the Finance Act, 1994).
Filing of return within the prescribed time limit is compulsory, even if it may be a nil return,
failing which penal action is attracted
FOR MORE INFORMATION PLEASE GO TO:-
http://www.cbec.gov.in/rhs-misc/st_faq_05mar09.pdf
In terms of Section 69 of the Finance Act, 1994 (Chapter V) read with rule 4 of the
Service Tax Rules, 1994 -
Every person who has provided a taxable service of value exceeding Rs. 9 lakhs, in
The preceding financial year, is required to register with the Central Excise or
Service Tax office having jurisdiction over the premises or office of such service
Provider.
In case a recipient is liable to pay service tax (Please see question No. 1.2) he also
has to obtain registration.
The ‘Input Service Distributors’ are also required to register them as per Notfn. No.
26/2005-ST dated 07.06.2005 as amended.
If a person who is liable to pay Service Tax fails to pay service tax, he shall pay in addition to
such tax and interest in accordance with the provisions of Section 75 of the Act, a penalty
13
which shall not be less than Rs.200/- for every day during which such failure continues or @2%
of such tax per month, whichever is higher. However, the penalty amount payable shall not
exceed the amount of Service Tax payable. (Refer to Section 76 of the Finance Act, 1994).
Filing of return within the prescribed time limit is compulsory, even if it may be a nil return,
failing which penal action is attracted
FOR MORE INFORMATION PLEASE GO TO:-
http://www.cbec.gov.in/rhs-misc/st_faq_05mar09.pdf
03 July 2010
Dear Sir thnx for earlier reply
but i am not able to understand as follows
is this possible i follow in Accounting Marcantile basis but i want service tax deposited when i recd amount from customer (cash base) ??
but i am not able to understand as follows
is this possible i follow in Accounting Marcantile basis but i want service tax deposited when i recd amount from customer (cash base) ??
03 July 2010
Dear Mr. Vinay,
1. Filing return is compulsory, since you are registered. The exemption upto Rs. 10 Lakh is not automatic, but optional. Please mention the exemption notification number in the return evidencing your opting for the exemption.
2. You may follow mercantile basis for Accounting. But Service tax is payable on cash basis. This is applicable to all service tax assessees.
1. Filing return is compulsory, since you are registered. The exemption upto Rs. 10 Lakh is not automatic, but optional. Please mention the exemption notification number in the return evidencing your opting for the exemption.
2. You may follow mercantile basis for Accounting. But Service tax is payable on cash basis. This is applicable to all service tax assessees.
03 July 2010
Agreed Mr. Naik
You have to file return .
You may follow mercantile accounting for account records. For payment , it is your choice. As per service tax law, cash basic for payment of service tax is allowable.
As per your case, in which customer deducts some amount, it is better to deposit service tax on cash basic.
By this you have to deposit only that amount which you received from customer.
You have to file return .
You may follow mercantile accounting for account records. For payment , it is your choice. As per service tax law, cash basic for payment of service tax is allowable.
As per your case, in which customer deducts some amount, it is better to deposit service tax on cash basic.
By this you have to deposit only that amount which you received from customer.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- REGARDING GST ON COMMERICIAL PROPERTY
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- ITC temporary reversal and reclaim
- TDS U/S. 194NF
- Applicable TDS rate for sale of property in Nov 2024
- Tds on building rent monthly
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding einvoice taken on nil rated sales
- Strategical investment in Public listed company
Trending Online Classes
CAclubindia
