Service tax liability
CA Sanjay Baheti (PROPRIETOR) (1155 Points)
06 June 2012CA Sanjay Baheti (PROPRIETOR) (1155 Points)
06 June 2012
RENGARAJ R.K
(ADVOCATE)
(7557 Points)
Replied 08 June 2012
Mr CA Sanjay Baheti,
It seems you have taken service Tax RC during August 2010. Have you started collecting service tax for the first ten lacs for the period oct 10 to ..........?
Please reply to provide the answers one by one.
rengaraj r.k
CA Sanjay Baheti
(PROPRIETOR)
(1155 Points)
Replied 08 June 2012
Mr.RENGARAJ,
Not Collected seperately through invoices till date.
Please reply soonest.
Regards.
CA SANJAY BAHETI
CA Akshay Yetiwar
(ca)
(254 Points)
Replied 09 June 2012
Mr.Baheti ji,
If you had not charged service tax in your invoice,,,
then claim exemption of Rs. 10 lacs in the first year.. and pay service tax on balance amount.
The amount which is received from customers can be treated as inclusive of service tax and then the service tax can be calculated by doing back calculation.
You can formulate it as Service tax = Total turnover / 112.36*12.36
And as the client is an individual service provider.., his liability to pay service tax is quarterly.
Use the percentage of service tax as applicable in the respective periods.