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Query on service tax

Raj kumar Garg (CHARTERED ACCOUNTANT) (38 Points)

14 September 2007

hi all

i hv a problem regarding service tax,

Can anyone tell me if i recd any amount as advance including the service tax on behalf of any other party (advance amount is much more than the service tax exemption limit)Is service tax is applicable to me of not.The amount I recd will be paid to the party in installments whenever the party bills become due

waiting for the solutioon

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11 Replies

Late CA Sampat Jain (Chartered Accountant) (4772 Points)
Replied 14 September 2007

One of the salient features of service tax levy is that it is payable only when the payment for the service rendered has been received by the service provider. Mere raising of a bill for the provision of service, does not result in any obligation to pay service tax. Receipt of payment against such bill is a condition whereafter only service tax is to be paid. However, the Finance Act, 2005 has introduced a major amendment whereby service tax becomes payable when payment is received in respect of services rendered or to be rendered or being rendered. The amendment by Finance Act, 2005 makes a sea-change in the position that was prevailing prior to the amendment. Therefore, where a service provider receives any payment whether in full or in part, whether as advance or otherwise towards the service rendered or to be rendered or being rendered, on such payments so received, the service tax liability is to be discharged

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(Guest)

i have a problem with rent on immovable property. i leased out my property to PSU Bank now we have to pay the service tax or bank will pay the tax on behalf of us how ever feature tax if any applicable is not mentioned in the agreement so please guide me accordingly

Shyam Lal Naik (Service) (6156 Points)
Replied 21 September 2007

Mr. Choudary, Ideally the bank should pay the tax.

Pavithra (student) (44 Points)
Replied 21 September 2007

Dear Mr. Choudary, As per act it is only the service provider who should pay the service tax. So you should get registered, filing form S T -1.You may then, after exchange of letters with the Bank, raise your monthly bill for the agreed rent plus the applicable service tax.

satynarayan tiwari (Professional) (78 Points)
Replied 22 September 2007

Hai friends here one problem raised that in service tax credit taken limit as Rs.50000/ if we had pay earlier excess of Rs.10000/.,can we take a credit of this excess amount paid in our earlier return

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Dinessh Kumar (Articled Asst.,) (193 Points)
Replied 23 September 2007

Hi Rajkumar, If you are a service provider then you are liable for service tax

Dinessh Kumar (Articled Asst.,) (193 Points)
Replied 23 September 2007

Hi satyanarayanan, You can set off the excess amount paid subject to declaration

satynarayan tiwari (Professional) (78 Points)
Replied 24 September 2007

hi frineds, in new procedural circular narrating that assessee who exempted due to turnover limit not to filed ST-3 my question is if assesee was registered due to its turnover comes Rs.7Lacs but at the year end not to come Rs.8Lac wether assessee file ST-3 or not????????

(Guest)

1) The legal advice given by non lawyer person in connection with procurement of land to a company for which a professional fee is paid by the company, whether this type of service comes under the perview of service tax ? /whether this will be a taxable service under Sec 65 (105) .