Service tax return

[Guest]

A individual has let out a property recd a gross amount(ie.Rent portion only no service tax amount recd ) for providing service in April ,may ,june. In sep recd service tax amount. so, service tax liabilty payment will be arises on receipt basis therefore 5 oct. due date correct me . now how such case in service tax return should I fill Column F(I)f in april may june as i have not recd service tax amount in this months i have recd it in sep month

[CA Rachit Agarwal]

Refer Section 67(2), for the purpose of valuation of taxable services where the gross amount received.

[rishi mohan]

Sir,

Service tax liability arises either you receive the part or the full payment. If the part amount is received in respect of taxable services, you need to pay tax on the gross amount received on the prportionate basis.

Calculation of service tax can be made as follows:-

Service tax = Gross amoun received*10.30/110.30.

After deposition of the service tax, the same shall be shown in the service tax return. 

Therefore in the above case you may calculate and deposit alongwith the interest for delayed payment of service tax, the amount of service tax received in april, may and june on proportionate basis. Same shall be applied for the gross amount received in september.

AI Summary

Service Tax Liability on Rental Income: Calculate Based on Gross Amount Received, Reference Section 67(2) for Valuation An individual inquired about the service tax liability on rental income received without the service tax portion for April, May, and June, with the tax amount received in September. A respondent advised referencing Section 67(2) for valuation, while another clarified that service tax liability arises upon receipt of any payment, whether partial or full. They suggested calculating the service tax based on the gross amount received using a specified formula and advised depositing the tax along with interest for delayed payments. The service tax should be reported in the return for the respective months on a proportionate basis.