suresh v (chartered accountant) (51 Points)
07 June 2009one of my client carrying chit business collects service tax on 100% of chit commission and remitting service tax on 70% chit commission (after claiming abatement @ 30% of chit commission.)
collecting service tax on abatement portion value of taxable service is permissible?
SIDDHARTHA SANKAR ROY
(Government Servant -MOF)
(868 Points)
Replied 07 June 2009
This is not allowed.What ever service has been collected has to be deposited in the Govt. account even if collected where not due.
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 09 June 2009
There is an express provision Sec.73 A wherein whatever has been collected as ST has tobe remitted to the GOvt. If you wish to avoid the same then the excess ST collected shshould be returned to the customer.
Interest is also applicable on the delayed payment.
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