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?
Service Tax is required to be paid at the rate in force (which at present 10. %) only on the value / amount of taxable service received in a particular month or quarter as the case may be, and not on the gross amount billed to the client. Alongwith Service Tax, an education cess @ 2% of the Service tax is also required to be paid in respect of all taxable services. However, in all such cases when the amount received is less than the gross amount charged / billed to the client, the Service Tax assessee is required to amend the bills either by rectifying the existing bill or by issuing a revised bill or a credit voucher / note and by properly endorsing such change in the billed amount. In case an assessee fails to do so, his liability to pay Service Tax shall be on the amount billed by him to the client for the services rendered.
Service Tax is required to be paid at the rate in force (which at present 12 %) only on the value / amount of taxable service received in a particular month or quarter as the case may be, and not on the gross amount billed to the client. Along with Service Tax, an education cess @ 2% + higher secondary education cess @ 1% of the Service tax is also required to be paid in respect of all taxable services. However, in all such cases when the amount received is less than the gross amount charged / billed to the client, the Service Tax assessee is required to amend the bills either by rectifying the existing bill or by issuing a revised bill or a credit voucher / note and by properly endorsing such change in the billed amount. In case an assessee fails to 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?
