20 April 2012
I am registered as consulting engineer and issue invoices to my customers according to service tax regulations. One of my customers to whom I issued invoice dt 15-03-2012 , has inspite of my repeated reminders, refused to pay me the invoice amount which included 10% Ser tax plus 2% Edu tax plus 1%SHS Cess.Under such case , what action should be taken by me regarding a) payment of ser tax amount to govt & b)against customer’s failure to pay service tax to me? Am I compelled to pay service tax even if the corressponding amount is not received by me from my customer? Rgds. B. R.
21 April 2012
Under current Service Tax POTR Rules , you are liable to pay. If not is received partly the Cenvat can be claimed. If not received fully it is a dead loss
24 April 2012
Thanks Ankit. There are few more querries as under. a)I had taken ST registration in 2007-08 when my Turnover was above Rs 8 lacs. However, in subsequent years it is less than Rs 8 lacs and for the years 2009-10, 2010-11 it was NIL.For 2011-12 it is less than 4 lacs.Though my request for surrendering was rejected , I continue to file ST returns regularly. Pl tell me Am I supposed to charge in my invoice the Servoce tax to my clients when I never exceeded Rs 10 lacs limit? b)If yes to above, Being Consulting Engineer , when should I pay Service tax under POTR Rules?? Thanks & Rgds . BR
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