RAMESH CHANDRA SHARMA (munka istentisztelet) (899 Points)
31 October 2011Should Service Tax be paid even, if it is not collected from the client or Service Receiver?
RAMESH CHANDRA SHARMA
(munka istentisztelet)
(899 Points)
Replied 31 October 2011
invoice is made of rs 5000.00 calculate service tax in above case....
ashish gupta
( student)
(1922 Points)
Replied 31 October 2011
It will be treated s including service tax. So tax amount will be
(5000*10.3)/110.3 = 466.90
RAMESH CHANDRA SHARMA
(munka istentisztelet)
(899 Points)
Replied 31 October 2011
@ ashish : correct
by the way......
as per section section 68 of finance act...if a service is taxable...then the service provider has to pay service tax whether he has collected it from client or not......
RAMESH CHANDRA SHARMA
(munka istentisztelet)
(899 Points)
Replied 31 October 2011
of course......asking.....
ashish gupta
( student)
(1922 Points)
Replied 31 October 2011
earlier tax was payable only at the time of receipt but there is a change from 1 april 2011. Now it is payable at the time of raising the invoice or receving the payment whichever is earlier.
Readl notification no 18/2011 dated 1-3-2011
RAMESH CHANDRA SHARMA
(munka istentisztelet)
(899 Points)
Replied 31 October 2011
i was not aware of that .....thanx for updating......earlier the tax was payble on amount recieved......
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