08 January 2008
SECTION 67 OF FINANCE ACT 1994 WHICH DEALS WITH SERVICE TAX STATES THAT SERVICE TAX IS PAYABLE ON GROSS AMOUNT OF CHARGED BY THE SERVICE PROVIDER FOR TAXABLE SERVICES RENDERED OR TO BE RENDERED. GROSS AMOUNT CHARGED WILL INCLUDE ANY AMOUNT RECEIVED TOWARDS TAXABLE SERVICE RENDERED TO BE RENDERED OR BEFORE,DURING OR AFTER PROVISION OF SERVICE . SO YOUR LIABILITY TO CHARGE SERVICE TAX IS ON TAXABLE SERVICE RENDERED. ,WHICH IS RS. 100 BUT NOT ON RS. 10 WHICH IS A STATUTORY LIBILITY. RS 10 DOES NOT CONSTITUTE TAXABLE SERVICE RENDERED BY YOU. R.V.RAO
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