Dear Sir
We run a franchise of International company and while providing service whatever amount is collected 20% of that amount ( and ST on 20%) is returned to the company. we pay service tax on 80% and company on 20%. We are filing Service Tax on our own from last two years and we are paying ST on only 80%.While filing ST3 we mentioned collection figure of only 80% for each month. We did not filed on 100% of collection and took cenvat credit on 20% ( Pls note company paid taxes on 20% and provided us Invoice for that). Do we need to file ST3 amendment, if so how to do it?
Thanks for help.
Franchisee advised to pay service tax on full amount received, claim CENVAT credit, amend returns within 90 days. A franchisee of an international company inquired about the correct method for filing service tax returns, as they had been paying tax on only 80% of collected amounts, with the company paying on the remaining 20%. A tax advisor clarified that service tax should be paid on 100% of the amount received, with CENVAT credit claimed based on invoices from the franchiser. The advisor recommended paying the tax on the remaining 20% with interest, documenting calculations for potential audits, and noted the 90-day limit for amending returns. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
