service tax calculation

[Guest]

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.

 

 

 

 

[Anil Mishra]

Please Pay on gross ( Net+TDS).

[Brijesh Verma]

Service Tax is payable on Gross amount that is before TDS.

As far as the second part of the query is concerned, Reverse charge applies only in case of the few specified services . 

[MANDAVILLI RAMAKRISHNA]

gross ( net plus tds ) is taxable subject to:

 

threshold exemption based on previous financial year up to Rs. 10 lacs

what is the status of the person whether individual or a trust or society or charitable trust etc., 

what is the nature of service provided by the person

what is the status ( both residential status and place of receiving of the service and also the legal status of the receiver ) of the recipient of the service

the taxing depends on various factors.

your question to be more clear.

 

[MANDAVILLI RAMAKRISHNA]

if the previous fin. year gross service receipts are less than Rs. 10 lacs

you need to pay tax on the amount in excess of Rs. 10 lacs in present year

provided that you have not collected ST from the recipient of the service

subject to RCM 

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.