I own service apartments. I raise invoices on customers inclusive of service tax. I charge service tax on the whole amount of rent without deducting municipal taxes paid and collect the service tax.
While remitting the same to the government, I deduct the corporation tax from the rent and compute service tax and remit the same.
Can I Do so? What is the remedy for the same. should i refund back the excess amount collected to the customers
11 March 2009
THE AMOUNT COLLECTED AS SERVICE TAX SHOULD BE PAID TO THE GOVT. AND IF ANY EXCESS AMOUNT IS COLLECTED TOWARDS SERVICE TAX EITHER IT SHOULD BE PAID TO THE GOVT. OR SHALL BE REFUNDED TO THE PARTY.
CAclubindia
