Deposition of service tax

[mahesh nandwani]

d/sir one of my clients, who is an association of persons, has taken some sheds on rent which are given to its members for use. Pl Confirm, whether In this case, net balance of service tax paid and collected will be depostied to the deptt. thanks

[Surender Gupta]

Yes, differential amount i.e. service tax minus cenvat credit is to be deposited.

[sudhir V S]

Service tax collected from the customer has to be deducted with the service tax paid to the owner and the balance has to be paid in TR-6/GAR-7 within the duedate.

AI Summary

Service tax net liability: deduct service tax paid or cenvat credit from collections and remit the balance timely.
Where an association of persons renting sheds to members collects service tax from customers but also pays service tax to the owner, the association must compute the differential between service tax collected and service tax paid (or cenvat credit) and deposit that net amount in the prescribed form (TR-6/GAR-7) within the due date.