Liability to pay service tax. PERSON LIABLE TO PAY SERVICE TAX 2019-02-07

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What is Service Tax Registration and who should pay it in India

liability to pay service tax

Please feel free to ask questions or share your thoughts in the comments section below. Profit and loss account debit by Rs. The First Appellate Authority held that, tax becomes payable only when it is collected from the customer. Presently, these are taxed under partial reverse charge mechanism. Please note that service tax is levied on service provided or agreed to be provided. In a separate judgment, Jayakar J.

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Ways to Pay Your Tax Liability

liability to pay service tax

In para 12, the learned Single Judge made the significant observation that there is no dispute that the parties did not visualize that service tax would be imposed when they entered into the lease. What is your view, Sir. Users who have upgraded their Internet Browser to this system will experience screen layout problems when using these filing and payment systems. Isn't this a form of taxation without representation? The present appeal arises from service tax payable under a clause in the deed of lease dated 1. The Service Tax Rules, 1994 have been made in exercise of powers under the rule making Section, namely, Section 94 of the Finance Act, 1994 which came into force on 1.

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Tax Withholding

liability to pay service tax

Cash payments will be first deposited in the Cash Ledger and the taxpayer shall debit the ledger while making payment in the monthly returns and shall reflect the relevant debit entry number in his return. Manik Service tax liability Rs. An individual consignment refers to all the goods transported in a goods carriage for a single consignee. Service tax is an indirect tax levied on certain services provided by certain categories of persons including companies, associations, firms, body of individuals, etc. Late Payment of Service Tax Interest rate for late payment of any Indirect Tax has been rationalised by the Govt in Budget 2016-17. Why am I required to pay taxes on my unemployment compensation benefits? Hence the liability to pay service tax into the Treasury will arise only upon the assessee receiving the funds and not otherwise. As per Section 75, simple interest at a rate not below 10% p.

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Interest on late payment of service tax

liability to pay service tax

But they refused to accept the payment siting reason that the challan generated is invalid as per their system. Accordingly, Service Tax in respect of mutual fund agents and mutual fund distributors services shall be paid by assets management company or, as the case may be, by the mutual fund receiving such services. Interest, Penalty and Fees cannot be paid by debit in the credit ledger. Now the entry part Expense Account Rs. Adjusting the Service Tax paid but the payment not recoverable later. A and the latter discharges his liability to Mr.

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Who is Liable To Pay Service Tax ?

liability to pay service tax

On the other hand, Shri Jaideep Gupta, learned senior counsel appearing on behalf of the Respondents, supported the judgments of the courts below. With the enactment of the Finance Act, 1994, the Central Government derived its authority from the residuary Entry 97 of the Union List for levying tax on services. This free system provides security, convenience and accuracy. For example, Service Tax for the month of February has to be paid on or before 6 th of March. Therefore, it is not a case that if obligation to make payment of service tax arises, the respondents would have discretion to foist the responsibility on the lessor the first petitioner. The service tax payable would include service tax payable by the service provider.

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PERSON LIABLE TO PAY SERVICE TAX

liability to pay service tax

My question is whether I will get the basic exemption limit of Rs. An appeal to the Division Bench yielded the same result. If you found this Tax Tip helpful, please share it through your social media platforms. In such cases, the taxpayer can issue a Credit Note to customer and then adjust the excess service tax paid by him against his service tax liability for the subsequent period. The legal backup was further provided by the introduction of Article 268-A in the Constitution vide the Constitution Eighty-eighth Amendment Act, 2003 which stated that taxes on services shall be charged by the Central Government and appropriated between the Union Government and the States.

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Section 43B does not contemplate liability to pay service tax before actual receipt of the funds

liability to pay service tax

Under this mechanism, the service tax is paid the service recipient and not the service provider. As stated above, as an economic concept, there is no distinction between the consumption of goods and consumption of services as both satisfy human needs. A whole set of rules and regulations are made for reverse charge which is known as reverse charge mechanism. I have a query, as follows: Is service tax payable under the normal service tax or reverse service mechanism applicable if a company based in India has acquired advertising and signage rights from an overseas company for an event that is not being held in India and the company based in India is selling the advertising and signage acquired, to overseas clients and clients not based in India? You check the same in above article. When these appeals were argued before us, our attention was invited by Mr. After the tax payer has finalized the challan, it will be generated. Sir, We are running a small guesthouse and collecting service tax from our customers booked through agencies and collecting room rent as a round sum without mentioning service tax from other customers directly coming to us.

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What is the rule of reverse charge liability in service tax?

liability to pay service tax

It appears that Clause 9 d seems to have been completely lost by the learned Arbitrator. So that we can ensure that both the parties are aware their liability. Hence the liability to pay service tax into the Treasury will arise only upon the assessee receiving the funds and not otherwise. Additionally, a sum of Rs. Select the current liability ledger created for service tax under Particulars. However, unemployment benefits are is designed to provide temporary income between employment.

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What is the rule of reverse charge liability in service tax?

liability to pay service tax

Thus, in Tamil Nadu Kalyana Mandapam Assn v. However some who are unregitsered are not depositing tax. Section 68 2 empowers central government to notify taxable services for which service tax shall be paid by prescribed person in prescribed manner. Service tax is an indirect tax and is to be paid on all the services notified by the Government of India for the said purpose. Treasury, whose mission is to maintain a strong economy, foster economic growth, and create job opportunities by promoting the conditions that enable prosperity at home and abroad. The most important thing is to understand is that it applies only to services and not on sale of products. Service provider fees may apply.

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Service Tax Exemption for Turnover below Rs 10 Lakhs

liability to pay service tax

The law does not excuse anyone from tax because of age. Milind raises an Invoice for Rs. Even in a converse situation, which is the situation in the facts of the present case, it is the provider of the service alone, who is liable for paying service tax. Choose an to make a tax payment online, by phone or by mobile device. Assessable Value for Service Recipient: The value on which service receipient will pay service tax under reverse charge mechanism will be Payment made by him to the service provider including out of pocket expenses. Enter the Amount as 70,000.


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