How to Raise an Invoice (Service Tax related Issue)
This query is : Resolved
08 February 2009
I am a very small scale works Contractor.. and very recently i had taken up a works contract from a big company. I had quoted 17 Lakhs for that works....But then the company had asked me to split the quotation into two and asked me give one quotation of for 16 Lakhs (for VAT Invoive) & another 1 Lakh alocated for service tax invoice(For Contract services.
Now the company is asking me to raise an invoice for this 1 lakh and collect the service tax for i lakh from them. But my problem is that i am not having a service tax registration. I actually maynot require the registartion as my servicable income does not cross more than 10 Lakhs in a year.
Anyone Please suggest me how raise the invoice for this 1 Lakh and what will i have to do with the service tax amount,when i don't have a service tax registration.
Now the company is asking me to raise an invoice for this 1 lakh and collect the service tax for i lakh from them. But my problem is that i am not having a service tax registration. I actually maynot require the registartion as my servicable income does not cross more than 10 Lakhs in a year.
Anyone Please suggest me how raise the invoice for this 1 Lakh and what will i have to do with the service tax amount,when i don't have a service tax registration.
08 February 2009
You should not charge service tax on the amount of 1 Lac.
If you charge, u will first have to get voluntarily registered and pay the amount charged.
If you charge, u will first have to get voluntarily registered and pay the amount charged.
08 February 2009
Ur not service tax assessee, therefor just invoice for 1 lac, please mention in your invoice your name, address & Pan No.
let them clear the due after TDS deduction.
let them clear the due after TDS deduction.
08 February 2009
Please advice me if there is any clause for not charging the service tax...if i am not a service tax assessee.
At the same time, Do i need to give them anything in writing for not collecting the service tax.along with the invoice of 1 lakh
At the same time, Do i need to give them anything in writing for not collecting the service tax.along with the invoice of 1 lakh
08 February 2009
Please be careful. There is a seperate notification under service tax for works contract service tax rules. Where you charge the client under service tax you have to pay a concessional rate of 4.12% on the total contract where in the bill there was no break up for material and services. If you say you are billing serives separately then on the service amount you have to pay tax. It depends on the option you take. Kinldy tell me what is your total turnover for current year. Then only course of action can be decided.
08 February 2009
My Expected Turn Over for this year is about 70 Lakhs....I had Billed my Client separately for the services....that amount is about 1.10 Lakhs.
08 February 2009
If you expect that the services will cross Rs.8 Lakhs then you register and you have to pay taxes. I hope you are runnin in danger. Beacuase if the service tax deparment scrutises and finds any fault that you have included any servie in 70 lakhs then they will demand 4.12% on the total amount. Atleast you paln propery for the next year and register in april 2009 for service tax and pay taxes accrodingly. Current year you have taken risk.
08 February 2009
No My Services are not crossing more than 8 Lakhs and i have shown all serviceable amount on a separate invoice which does not cross even 1.2 Lakhs for the current year.
Please advice me if there is any clause for not charging the service tax...if i am not a service tax assessee.
At the same time, Do i need to give them anything in writing for not collecting the service tax.along with the invoice of 1 lakh
Please advice me if there is any clause for not charging the service tax...if i am not a service tax assessee.
At the same time, Do i need to give them anything in writing for not collecting the service tax.along with the invoice of 1 lakh
08 February 2009
Please Read all the above and give me a suggestion
08 February 2009
If you are confident your services willnot cross 8 lakhs then you need not register with service tax authorities.
You need not collect service tax from your client.
It is not required to give any letter for them. If you charge then they will pay it to you and cliam set off benefit. When they are not paying they are not worried.
You need not collect service tax from your client.
It is not required to give any letter for them. If you charge then they will pay it to you and cliam set off benefit. When they are not paying they are not worried.
08 February 2009
Thank You......Mr.Srinivasulu.......I truly appropriate your patience and the time that you had given to Solve my issue...I am extremely thankful for your given time & Excellent suggestions
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?
- 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
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- Tds on building rent monthly
- GST ON EXPORT COMMISSION
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- 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
