Originally Posted by vshs
can you purchare a top up for mobile phone of rs 50 and then pay just rs 45 deducting the tax??????
it doesnt happen like that dude....
clear the service tax along with the bill or the bill is incomplely paid...
When you do a top up for mobile, there is no invoice. It is an instant cash transaction and the service tax amount is included in the amount you pay. For Idea or Airtel, this amount becomes due to the govt the instant the top up is made. But for postpaid accounts, when Idea or Airtel send you a bill (which mentions service tax separately) this service tax amount has to be paid by them to the govt immediately, regardless of when or how much you pay them.
Service tax has to be paid to the govt by the service provider, unlike income tax where there is a concept of TDS and the client withholds it and pays to the govt. So there is no question of client withholding and paying the service tax to the govt on your service provider's behalf.
What the OP can do is show his client the challan of the service tax payment in the cycle immediately following him raising his invoice. Although this is not a legal requirement to release payment, sometimes one has to do these things to keep clients happy. The client also doesn't need your challan in order to get input service tax credit - your invoice to him will be enough for that.
Similarly, you can show your mobile postpaid bills to claim input service tax credit, without having to show any proof of actually having paid those bills.