Devendar Chawla (Service) (74 Points)
14 December 2016WE raised the bill in the month of December 2016 to our client ( including Service tax, SBC and KKC). The Payment has not been received fo far. Payment is expected in Feb 2017.
Please let us know when the service tax is to be deposited.I.e. before 5th January 2017 or after receipt of payment.
Devendar
Aanand Jha
(Employed)
(792 Points)
Replied 14 December 2016
If you are Individual and your turnover is under Rs.50 Lakh, you may pay service tax on Recipts basis
CA Sagar Upadhyay
(Chartered Accountant)
(38 Points)
Replied 15 December 2016
It depend on your Constitution Status, if you are an Individual and your turnover is less than the tax is liable to be paid on the basis of cash basis and if you are not an individual then you are required to pay the tax on or before 6th of January.
Devendar Chawla
(Service)
(74 Points)
Replied 16 December 2016
We are LLP and turn over has reached 10 lac. This is our first invoice. St registration done this month only.
2. Do we have to deposit full St or only difference 25% as 75‰ is to be deposited by the service receiver.
Devendar Chawla
(Service)
(74 Points)
Replied 16 December 2016
Thanks for your reply. We are LLP and turn over has reached 10 lac. This is our first invoice. St registration done this month only.
2. Do we have to deposit full St or only difference 25% as 75‰ is to be deposited by the service receiver.
CA Sagar Upadhyay
(Chartered Accountant)
(38 Points)
Replied 16 December 2016
Which type of services are you providing?
do you mean the party has only paid 25% percent of billed amount?
Devendar Chawla
(Service)
(74 Points)
Replied 16 December 2016
We are producing annimation video , agumanted realty and virtual realty videos.
we are LLP
as i understand being LLP we have to pay ST on quaterly basis.
My question is
1. whether date of TAX invoice or date of receipt of payment is to be considered for payment of ST by challan
2. As I know the service receiver deposits the 75% of service tax while making payment and balance 25% is to be deposited by us is this true?
3. If we deposit the Full ST and the service receiver deposits 75% then it will be 175%. We would like to avoid this situation.
DEVENDAR
CA Sagar Upadhyay
(Chartered Accountant)
(38 Points)
Replied 16 December 2016
As of your present case the date of Tax Invoice shall be considered and you are talking about 25 75 % but there are not a single provision for Partial Reverse Charge for your service
Partial Reverse Charge is Only for Works Contract Service and renting of motor vehicle
why the service receiver is paying 75% tax ?
is there any agreement between you and your service receiver for the same?
Devendar Chawla
(Service)
(74 Points)
Replied 17 December 2016
Thanks Mr Upadhya,
I am drawing disbursing officer.
These queries are being put tome by some vendor.
I gain from you that
LLP has to deposit ST on quaterly basis.
Date of invoce is considered as actual date of transaction not date of receipt of payment.
75% and 25% is applicable for work contract service.
Contract for producing video annimation will fall under "work contract service" ?
CA Sagar Upadhyay
(Chartered Accountant)
(38 Points)
Replied 17 December 2016
i think you have been mistaken somewhere because there is no 75:25 but it is 50:50 ratio
CA Sagar Upadhyay
(Chartered Accountant)
(38 Points)
Replied 17 December 2016
i can not say straightaway without going through the agreement made between you and your client and for Works Contract Service the ratio is of 50:50.
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