service tax on advance payment
This query is : Resolved
25 March 2008
Sir please clear the following issues in respect to the given problem.
1- Amount on which service tax shall be charged & when.
2- If balance payment is not received, will it affect the tax liability.
Facts:
I am goods transporter i have received 10000.00 advance on 1.1.8 for services , which i had provided to customer on 04.03.08 , total amount of my services will be 60000.00 , and presently i am feeling that he will not pay me 50000.00.
thax in advance
1- Amount on which service tax shall be charged & when.
2- If balance payment is not received, will it affect the tax liability.
Facts:
I am goods transporter i have received 10000.00 advance on 1.1.8 for services , which i had provided to customer on 04.03.08 , total amount of my services will be 60000.00 , and presently i am feeling that he will not pay me 50000.00.
thax in advance
25 March 2008
Service tax is payable only on receipt of payment.You have received only 10000 Rs.so you have to pay service tax only on 10000 Rs.Secondly, service tax is payable on advance payment for which service is likely to be given.Since you have received 10000 on 1.1.8 so you have to pay service tax for that month alongwith interest.
25 March 2008
The liability to pay service tax immediately arises as and when the payment is received irrespective of the fact that actual service for the amount received has been rendered or not. In ur case since u have received Rs 10000 this amount will be considered inclusive of service tax and ur liability towards service tax would be calculated as 10000-(10000/112.36%)i.e Rs 1100. So you are liable to pay Rs 1100 as service tax.
As regards ur second part of the question ur service tax liablity will not depend on whether u'll receieve ur balance amount. But however if u receive ur balance amount u w'll again have to discharge ur service tax liabilty in the same manner as is calculated above treating that receipt as including service tax.
Regards
Prasad.R
As regards ur second part of the question ur service tax liablity will not depend on whether u'll receieve ur balance amount. But however if u receive ur balance amount u w'll again have to discharge ur service tax liabilty in the same manner as is calculated above treating that receipt as including service tax.
Regards
Prasad.R
26 March 2008
SERVICE TAX IS PAYABLE ON RECEIPT BASIS AND NOT ON DUE BASIS.ON RS10000/- YOU ARE REQUIRED TO PAY SERVICE TAX ALONG WITH INTEREST
26 March 2008
Since you are lible to pay tax under Goods Transport Agency Catagory, you are eligible to avail 75% abetment.
Further, if the consignor or the consignee fall under the specified catagory, the liablity to pay tax will fall on the person liable to pay freight.
Further, if the consignor or the consignee fall under the specified catagory, the liablity to pay tax will fall on the person liable to pay freight.
28 March 2008
Service Tax is due on receipt basis and not on due basis.
So liability is to pay only S Tax on 10,000 subject to abetement
So liability is to pay only S Tax on 10,000 subject to abetement
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
- Applicability
- CPC Processing IT Return for AY 2023-24 without recognizing the Taxation Option under New Regime
- Where to show the RCM on Rent paid to unregistered landlord
- Is Aadhar PAN linking required for opening bank account?
- RCM - commercial rent paid to URP under GST
- Offsetting interest income against derivative trading losses
- TDS NUMBER SURRENDER
- GSTR-3B - Do I file nil when there is no sale but I've bought raw materials
- Gst Sales of FY 2023-24
- Legal heir raised refund , but refund issued to the closed account of deceased.
- My Last working day in current org is in novemebr 2024 but they are asking me to submit IT proof
- Indexation benefit applicability
- SEC 54 OF IT ACT
- Passed group 2 exams under wrong gender
- REQUIREMENT OF 15CB
- QUERY FOR RCM ON RENT
- APPEAL-CIT
- Payable outstanding for years disallowance
- Whether still royalty
- Issue of gst e invoice
Trending Online Classes
-
Excel Mastery Program
CA Rishabh Pugalia
CAclubindia
