18 May 2009
I am working in SEZ developer company. There is One of the Contractor providing consultancy. It has taken 10% of the contract amount as an advance wothout charging Service Tax on the same since it is exempt for service provided to SEZ. Now as there is notification regarding charging of Service Tax for service provided to SEZ. It bills Rs. 80000 per month. Now on which amount service Tax is to be charged Rs.80000/- or Rs.72000(80000 less 8000 being 10% advance). I have read that Service Tax is charged on reciept basis. Please Help me. Thanks in advance.
18 May 2009
Based on Notification 9/2009, Service provider are liable to charge service tax to SEZ and SEZ are eligible to claim the refund for the service tax paid. It is true that service tax has to be paid on receipt basis, therefore service tax has to be paid on Receipt of 72000/-
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