service tax return

[Guest]

service tax liability arises when service tax payment recd correct I have recd gross amount but service tax amount not recd now my liability not arised correct . but now Q is in return how should i show it Plz explain me by e.g and also specify the what column of return fill or not to fill Plz guide me so urgent I wil be very thank ful to you

[CA Rachit Agarwal]

Even if the service tax amount not received, the Service Tax payment liability arises.

Refer Section 67(2), for the purpose of Valuation of Taxable Services, where the Gross amount received-

Value of Taxable Services in this case will be equal to gross amount received divided by 110.30% if the service tax charges is @ 10.30%. 

Now Service Tax amount can be calculated as Value of taxable services multiplied by the Service Tax Rates as applicable/charged.

[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. 

 

AI Summary

Service tax liability arises even if tax component not separately received; compute from gross receipts and declare after payment. Service tax liability arises on receipt of consideration even if the tax component is not separately collected; where gross amounts are received inclusive of tax the taxable value is extracted from gross receipts by grossing down (using the appropriate gross-up factor) and the service tax payable equals that extracted taxable value multiplied by the applicable rate. Partial receipts trigger proportionate liability on the amount received, and tax must be deposited and shown in the return after payment.