TaxTMI 
TaxTMI 
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.
service tax calculation
25 Oct 2013 
4 Replies 
1319 Views Asked by
Guest 
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. (AI Summary)
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. (AI Summary)