service tax calculation

[SUBRAMANIAM MEENAKSHI SUNDARAM]

SIRS,

IF A PERSONS NET INCOME IS Rs.100000/- AFTER DEDUCTING TDS , WHAT IS HIS LIABILITY OF

SERVICE TAX, ( IF HE IS A SERVICE PROVIDER, HE HAS TO PAY OR THE SERVICE RECEIVER HAS TO PAY)

KINDLY CLARIFY.

 

 

 

 

AI Summary

Understanding Service Tax: Calculate on Gross Income Before TDS, Consider Reverse Charge, and Previous Year's Receipts. A forum participant inquired about the service tax liability for a net income of Rs. 100,000 after TDS deduction. Responses indicated that service tax should be calculated on the gross amount before TDS. One participant mentioned that the reverse charge mechanism applies only to specific services. Another highlighted that tax liability depends on factors such as the previous year's gross receipts, the nature of the service, and the status of the service provider and recipient. If gross receipts were under Rs. 10 lacs the previous year, tax is due only on the excess amount, provided no service tax was collected from the recipient.