example 1,00,000 recvd rent client not paid service tax
officials demand to pay serv.tax - recvd rent so pay service tax.
is it right pls advice.
my queary recvd amount 1,00,000 on this tax was 12360
or included service tax 89,000 on this tax was 11000
which is right one(ser.tax not recvd case) pls advice forum friends.
If you provide any taxable service, then you are liable to pay Service Tax.Service Tax is calculated on the full and actual amount of revenue (value of taxable service)earned through providing of taxable service.
Service Tax amount is a separate component and hence usually computed on the amount received.So, depending upon your information, rent of Rs.1,00,000 received by you will be EXCLUDING service tax.
So, Service tax amount payable would be Rs.12,360.00 (Rs.1,00,000 * 12.36%).If your client has not paid or refuses to pay the service tax amount, then you may have to pay it out of your pocket.
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