Service tax return

[Asked by 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 on receipt basis: tax must be paid on amounts received and reported in the service tax return.
Service tax liability arises on the receipt basis and valuation is computed on the gross amount received; tax is payable proportionately on any part payments received. Tax must be deposited (with interest for delays) and shown in the service tax return for the period when the amounts were actually received, and the same approach applies to subsequent receipts.