Service Tax

Querist : Anonymous (Querist) 12 April 2010 This query is : Resolved
Dear sir

We are a private NBFC compnay, we did a professional service to another private ltd company and raised an Invoice in the mid of Dec'09 with Serive tax. This is our first invoice for the professional service We registered our company under service tax act by mid of Jan 10. We took input credit to match the output credit in the month of Dec 09. We have not paid the amount collected towards service tax. Is this correct. Is there any penal clause attarcts for this. If yes how much we should pay to condne this

Kindly reply

thanks

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Raj Kumar Makkad (Expert) 12 April 2010
You are liable to deposit the tax collected against the invoice otherwise you shall be liable to be prosecuted/pnalized doubly.

Parthasarathi Loganathan (Expert) 12 April 2010
In case of service tax payable in excess of Rs.10.00 Lakhs and above it is mandatory that it has to be remitted through internet banking furnishing the PAN details

Sumit Batra (Expert) 13 April 2010
1. Have u exceeded the limit of 10 lacs?
2. If u have not paid service tax to the govt. exchequer but have collected the same then u can be held liable to pay interest on that tax, penalty that shall not be less than Rs.200 per day for such failure or 2% of such tax, which ever is higher. (Section 75 & 76). It is to be noted that total penalty payable should at max be equal to the service tax not paid.

Querist : Anonymous (Querist) 13 April 2010
Thanks for response.

1. We have not exceeded Rs. 10 Lacs in the month of Dec 09. We have exeeded in themonth of Jan 10.(registration done in completed in the same month)
2. Is our stand on taking of input credit before registration is in order.
3.Can we include Dec 09 details in our return

Thanks for your support

regards

soumitra basu (Expert) 13 April 2010
You have to pay the service tax on the entire amount received by you if exceeds rs. 10.00 lacs. The service tax is payable on the entire amount less Rs. 10.00 lacs less input credit. You have to include the details of december. Please note that you have to pay the service tax on the entire amount received but not on the amount billed.

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