Remittance of servicetax collected from the customer to govt

This query is : Resolved

Ramakrishna (Querist)
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25 April 2012 sir,

our company business is a hotel business, our company is collecting Service Tax @ 10.30 % on following catering services during the financial year 2011-12
1. Hotel Accomidation service
2. Mandap keeper services
3 . Restaraunt services
we know that there is a abatement of 50 %, 40 % ,70 % on the above Respective category services while making service tax payment to the government we considering the abatement on the above category of services and paying service Tax @ 5.15 % ,6.18 %,3.09% respectively

my query regarding the service Tax is “ Is it compulsory that the service tax amount collected from the customer is remitted to the government (or) not ?

Pratik Pankaj Shah

Pratik Pankaj Shah (Expert)
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25 April 2012 Yes.
Any amount collect from customer showing as service tax should be credited to Central government account otherwise interest liabilities with penalty would be attracted.