Levy of service charge
sanjeev kumar (112 Points)
21 March 2016
What's the difference between service charge and service tax? treatment of them in accounts and tax as well
sanjeev kumar (112 Points)
21 March 2016
Rinky Senger
(_)
(205 Points)
Replied 21 March 2016
service charge is the fees additionally or specifically charged by the service provider for providing the service, nd service tax is the tax imposed by govt.
Service charge is an expense whereas for service tax, input can be taken, provided its an eligible input service.
sanjeev kumar
(112 Points)
Replied 21 March 2016
If a Y uses some services as input services from X and He charged service charge in his bill to the service receiver Y.
then, whether Y is eligible for credit for his out put service (taxable) for the same
Rinky Senger
(_)
(205 Points)
Replied 29 March 2016
Y cannot take credit of service charges, this amount is the income of X.
Y can take credit of service tax charged on the bill while keeping other points related to service tax in concern.
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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