Service tax on retention money
Shailly (Consultant ) (59 Points)
28 January 2010Shailly (Consultant ) (59 Points)
28 January 2010
Amir
(Learner)
(4016 Points)
Replied 28 January 2010
Dear Shailly,
Service tax follows cash (i:e receipt) basis except in case of transactions between Associated enterprise.
Therefore In present case Service Tax is payable on 90% of the invoice amount *(i:e what we have actually received)
and Service Tax on remaining 10% will be paid on receipt of the same.
PRATIK P MEHTA
(Final Student,articles)
(125 Points)
Replied 28 January 2010
i agree with amir......
Sushmita
(Finance Officer)
(142 Points)
Replied 29 January 2010
CA. Sandeep Choudhary
(23 Points)
Replied 12 December 2010
sushmita, Shoorji judgment relates to income tax and not service tax
Habeebunnisa
(Articles assistant)
(22 Points)
Replied 01 December 2016
If we have received the exempt service and retained the money, should we disclose in the return inclusive of retention money or excluding it?
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