[Coolbreez]

Originally Posted by hottub

You have to pay service tax to govt immediately on raising an invoice even if the client does not pay. Sad but true that your cash level will actually become negative until the invoice is paid up. You can confirm this with your CA.

yeah, you have to pay tax either on raising invoice or receiving any advance payment against your services.

earlier it used to be on cash basis (you have to pay tax, only when you receive payment against your services), but since July'11 its now on accrual basis (service provider becomes liable to pay tax when the invoice is raised or payment received against the service, whichever comes first).


however, cant understand why the service receiver is asking for proof to clear the service tax component, and what if you will show that you have adjusted the service tax payment with the already available service tax credit in your books?

Just show your service tax registration...

[hottub]

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.

[Always Right]

Originally Posted by vshs

in west bengal i guess its 50 lakh. i dont know about ur state.... but 10 lakh i guess is a meager amount of turn over which would even bring a normal person under service tax if he is running small grocer shop and dealing in cheques...

thanks

S.tax is Central subject. There is no separate limit for each state.

[Always Right]

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...

In this case, you are service receiver but not service provider. In my case, I am service provider. The service receiver doesn't the S.Tax component instantly on submission of invoice/completion of service.

[Always Right]

Originally Posted by Coolbreez

yeah, you have to pay tax either on raising invoice or receiving any advance payment against your services.

earlier it used to be on cash basis (you have to pay tax, only when you receive payment against your services), but since July'11 its now on accrual basis (service provider becomes liable to pay tax when the invoice is raised or payment received against the service, whichever comes first).


however, cant understand why the service receiver is asking for proof to clear the service tax component, and what if you will show that you have adjusted the service tax payment with the already available service tax credit in your books?

Just show your service tax registration...

Thanks.
Can you pls quote any notification ref.??

[hottub]

Originally Posted by Always Right

Thanks.
Can you pls quote any notification ref.??

Originally Posted by Always Right

can you quote the relevant S.tax rule No.??

http://bit. ly/MUqTA7

[vinpervdelhi]

Originally Posted by hottub

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.

Government clients sometime insist on such extraneous things , their intention usually is different. But showing them a service tax registration certificate and certifying to them that the service provider would pay the tax, whenever due, should serve the purpose. As the person in this quote said, the tax becomes due , and payable, as soon as you raise an invoice.

[Always Right]

Originally Posted by hottub

http://bit. ly/MUqTA7

the link is not opening. can u post correct link?

[Coolbreez]

Originally Posted by Always Right

the link is not opening. can u post correct link?

check out notification no. 25/2011 - Service Tax

[bangali_babu]

shouldn't you have the service tax ID (TIN, TAN, or whatever) printed on your receipt pad/invoice book?