Lakshmi (Article Assistant) (26 Points)
11 December 2009
Sorabh Gupta
(Manager ( Taxation ))
(877 Points)
Replied 12 December 2009
Lakshmi
First of all one thing i would like to clear you that that the liability to pay service tax to govt. is of service provider.But his liability has arises to pay service tax only when he got the payment of same from their client.
In ur (1) point , if client fails to pay service tax to service provider , then in that case service provider is not liable to pay service tax. As you told that liabilty is arises when the service is provided or to be provided but liablity to pay is arises only when service provider got the value fron their client.
In think your (2) point is also cleared .If any doubt then revert back to me..........
sj prem
(Student)
(22 Points)
Replied 12 December 2009
But as per Amendment Finince Act 2008...even though value of taxable service is not received by the service provider,he has to pay ST to the Govt in case of service transaction between ASSOCIATED ENTERPRISES........
Sorabh Gupta
(Manager ( Taxation ))
(877 Points)
Replied 12 December 2009
Prem
Infact i exactly dnt know regarding that. Could you tell me exactly the provision with section or rules so taht we can update ourselves.......
Saurabh
(Article)
(36 Points)
Replied 12 December 2009
Lakshmi
there is no need to pay service tax for the said service
as the concept of service tax is CASH BASIS.
S K SINGH
(CA FINAL)
(42 Points)
Replied 12 December 2009
Dear Sorabh
You are right
But i want to added one thing in your answer for share knowledge, if i'm wrong then please confirmed me.
>>If payment is received (excluding service tax amount) then 1st off it is assume that service tax amount has been received and S.Tax amount would be paid by service provider to gov.
Ridhi
(job)
(63 Points)
Replied 12 December 2009
luk here i would like to tell u two things firstly any service tax i levied on basis of taxability of service which is determined dat at da tym of rendering da service whether da service was taxable or not n service tax is collected on payment basis
now da ans to ur first ques is...... no der is no need to pay any service tax.. coz as nil value is received towards da service which means in other words it is a free service n no service tax is levied on free service
and ans to ur second ques is..... dere is no need to escape as der is no liability......
i hope my ans helped u
Max Payne
(employed)
(2574 Points)
Replied 12 December 2009
| Originally posted by :Sorabh Gupta | ||
| " | Prem Infact i exactly dnt know regarding that. Could you tell me exactly the provision with section or rules so taht we can update ourselves....... |
" |
Hi Sorabh,
here is good article on the subject
Lakshmi
(Article Assistant)
(26 Points)
Replied 12 December 2009
| Originally posted by :Lakshmi | ||
| " |
As you said if the fee is not received the service provider may treat the service as free service then is there any clear evidence or rule ensuring that it is to be treated as a free service, so that it is comfortable for me to refer the same.
@ all Thanks for your reply guys. Moreover, according to me the provision as to the ST is to be remitted to the Government only when the fee is so received, is just a convenience provision, because the service provider may not be in a position to pay out of his pocket. What is ur stand? Finally, if prem's update on amendment is true then the point of payment of ST on receipt basis vanishes. Then is that an exception to the rule? Kindly provide your answers with reasonable evidence. |
" |
Satish
(CA Final Student)
(479 Points)
Replied 13 December 2009
Dear Sorabh Gupta,
I wish to throw some light on ur view to this disscussion. First of all, the person liabie to pay service tax is the service provider. Since it is indirect levey, he can charge service tax over and above the value of his service in his bill and collect service tax from his clients. But if his clients refuses to pay service tax and pays only basic value of service, yet the service provider is liable to pay service tax to the government. The department has nothing to do with whether you have received service tax from ur client or not. Whatever you have received would be treated as inclusive of Service tax and accordingly, the liability would be worked out.
If the client refuses to pay anything, then Riddhi's view stands true and the service rendered would be treated as free of cost and no service tax is payable.
Anand Prasad
(accountant)
(23 Points)
Replied 31 December 2009
kindly provide a form for surrender of service tax registration. due to reson is i have shifted to kotla mubark pur, delhi to kalkaji main road, delhi
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 01 January 2010
Liability to pay the service tax is on receipt basis unless you are dealing with associated enterprises. No liability if no amount recievd.
Amit Kr. Singh
(XYZ)
(22 Points)
Replied 06 January 2010
Would it be my choice to take service tax input on expenses?
or in other words, my service tax input are excess over my service tax output.. as excess service tax input could not be refunded by the govt. so im planning to claim full value of rent (including service tax) in my books and whatever service tax liability would be.. i will pay to govt..
Kindly Advise!!
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