Is the Service Tax payable by the assessee, even in cases where his clients do not pay for the service rendered or pay only a part of the bill raised in this regards?
Ans. No. in terms of the present law, the person providing the taxable service to some one is liable to pay the Service Tax on the value of the taxable service realized from the clients. The Service Tax is required to be paid only on the value of taxable services received in a particular month or quarter, as the case may be, and not on the gross amount charged or billed to the client. However, in all such cases where the amount received is less than the gross amount charged/billed to the client, the service tax assessee are required to amend the bills, either by rectifying the existing bill or by issuing a revised bill and properly endorsing such change in the billed amount. In case an assessee does not do so, his liability to pay service tax shall be on the amount billed by him to the client for the services rendered.
Related Questions
- Is the Service Tax payable by the assessee even in cases where his clients do not pay for the service(s) rendered or when the client pays only a part of the bill raised in this regard?
- Is the Service Tax payable by the assessee, even in cases where his clients do not pay for the service rendered or pay only a part of the bill raised in this regards?
- Is the Service Tax payable by the assessee even in cases where his clients do not pay for the service rendered or pay only a part of the bill raised in this regard?
