service tax calculation

[Asked by 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

Service tax on gross receipts applies before TDS, with reverse charge limited to specified services and threshold exemptions affecting liability.
Service tax is chargeable on gross receipts before deduction of TDS; reverse charge applies only to specified services and the provider is ordinarily liable. A threshold exemption based on the previous financial year (noted as up to Rs. 10 lacs) means tax in the current year is payable only on amounts exceeding that threshold if the provider has not collected tax from the recipient, and liability also depends on provider status, service nature, recipient status and place of receipt.