TaxTMI 
TaxTMI 
TaxTMI 
Calculation of SHEC
Guest
SHE cess is effective on service tax from 11.5.07. In respect of quarterly AMC payments for the period Apr-Jun'07, the bills raised and amount received in Apr'07 and hence tax paid @ 12.24%. In the light of new SHE cess effective 11.5.07, whether SHE cess is to be paid proportionately on the tax on charges relatable to the period 11.5.07 to 31.5.07? If so, how could the amount be shown in the returns?
Dispute Over SHE Cess Calculation on Service Tax for April-June 2007; Proportional Payment and Reporting Clarified A query was raised regarding the calculation of the SHE cess on service tax effective from May 11, 2007, specifically for quarterly AMC payments made for April to June 2007. The issue was whether the SHE cess should be applied proportionately to the period after May 11, 2007, and how to report this in tax returns. One response suggested charging an additional 1% and showing it as 'arrears of tax paid' in the return. Another response affirmed the proportional payment and advised indicating the total service tax payable with a note about the inclusion of the SHE cess after May 11. (AI Summary)