Can someone please clarify whether there is service tax for Senior Consultant(Information Technology) working on contract basis for a company. I will be installing and maintaining ERP(Enterprise Resource Planning) servers.The company will deduct 5.61% TDS. If there is service tax then what amount will come under service tax? Is it the total gross amount paid monthly including TDS amount? Can someone please clarify.
The total income will be over 4 lacs/annum. If the service tax is applicable is it only applicable for the amount in excess of 4 lacs. Say my total gross income is 8 lacs. Do I need to pay service tax for 8lacs or only 4lacs taking the exemption atleast for the first year. All the inputs are greatly appreciated.
I just wanted to clarify whether I have to pay service tax based on 1)Computer Maintanence or 2) Intellectual Property Service
Can Someone please clarify. I really appreciate your inputs.
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Service Tax Conundrum?
Replies (6)
Hi Dear,
Ans. to your queries:-
1) Service tax should be on total amount including TDS.e.g. amount [b]charged[/b] for servises Rs. 300000/- then S.T. should be paid on Rs. 300000/-.
2) As & when your turnover cross over Rs. 4 lacs, u should register with Service tax deptt. & start to charge service tax on bill. u r not insisted to deposit serivce tax on first Rs. 4 lacs.
3) In my view your services comes into maintenance services ( limited facts provided).
Ravi Teltia
Ans. to your queries:-
1) Service tax should be on total amount including TDS.e.g. amount [b]charged[/b] for servises Rs. 300000/- then S.T. should be paid on Rs. 300000/-.
2) As & when your turnover cross over Rs. 4 lacs, u should register with Service tax deptt. & start to charge service tax on bill. u r not insisted to deposit serivce tax on first Rs. 4 lacs.
3) In my view your services comes into maintenance services ( limited facts provided).
Ravi Teltia
The One Says:
I would like to differ from what Mr. Ravi Teltia has said or may be it was a typo.
A person should register within 30 days from date of commencement of the business of providing taxable service and in case of service providers who are exempt they should register when the aggregate value of taxable service exceeds [b]Rs. 3 Lakhs[/b].
The other questions can be answered only if you provide more information but it is likely to be as pointed out correctly by our colleague Mr. Ravi Teltia.
I would like to differ from what Mr. Ravi Teltia has said or may be it was a typo.
A person should register within 30 days from date of commencement of the business of providing taxable service and in case of service providers who are exempt they should register when the aggregate value of taxable service exceeds [b]Rs. 3 Lakhs[/b].
The other questions can be answered only if you provide more information but it is likely to be as pointed out correctly by our colleague Mr. Ravi Teltia.
Ravi and The One thanks for the reply.
So does this mean I have to pay service tax on the whole 8 lacs and cannot claim any exemption on the first 4lacs? Can you please clarify? This is the first year I will be working on contract.
Who are eligible to claim that exemption?
Thanks.
So does this mean I have to pay service tax on the whole 8 lacs and cannot claim any exemption on the first 4lacs? Can you please clarify? This is the first year I will be working on contract.
Who are eligible to claim that exemption?
Thanks.
The One Says:
sat you are welcome to get general suggestions but let me tell you that this forum is for discussion among professionals and students and [b]not for getting free tax advice[/b] which incidentally you have already received from the very kind Mr. Ravi Teltia who has explained in clear terms what you should do.
Please consult a professional CA or CS with your situation for further clarifications & advice. As a professional myself I doubt if anyone would, could or should give you advice based on limited information and with due regard to ethical standards.
sat you are welcome to get general suggestions but let me tell you that this forum is for discussion among professionals and students and [b]not for getting free tax advice[/b] which incidentally you have already received from the very kind Mr. Ravi Teltia who has explained in clear terms what you should do.
Please consult a professional CA or CS with your situation for further clarifications & advice. As a professional myself I doubt if anyone would, could or should give you advice based on limited information and with due regard to ethical standards.
dear sir
i C&f of two company i received the commission with service tax
my services is applicable in service tax
my grose receipt is less then 8 lac (what i applicable in service tax)
when any company receive commission with service tax.so that company taken servicetax
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