Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: cpt :: VAT RATES :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: due date for vat payment :: VAT Audit :: empanelment :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARDS :: Central Excise rule to resale the machines to a new company :: TDS :: list of goods taxed at 4% :: form 3cd :: articles on VAT and GST in India
 
 
« Service Tax »
 Extension Of Provisional Attachment Under Service Tax Provisins
 How favourable will GST be for Karnataka?
 GST rate impact: Here’s how the new tax can carry a greater punch
 E-way Bill - movement of goods under GST
 How the GST rates will affect your money
 GST: The coming disruption in the wholesale trade
  Ways In Which GST Will Impact The Average Indian’s Wallet
 Goods done, GST Council seals tax rate on services
 Respite likely for businesses on e-way under GST
 Govt to strengthen agency under GST to check tax evasion
 1% tax at source under GST likely for online sellers

How to set off the service tax
February, 10th 2014

If you use the services of vendors and service providers, you may find that the money you pay them includes service tax. When they invoice you for their services, they recover from you the service tax that they have to pay. The tax laws allow a setting off so that credit is available for payments already made to ensure that costs do not rise due to the tax component.

Tax credit: Whenever you prepare invoices in which service tax has been included, you get a service tax credit. This amount is deemed to be the service tax that you have already paid. Setting off: When you file your service tax, you compute the due tax and deduct the total amount you have already paid your vendors as service tax. Then, pay only the balance.

Documentation: To claim a set-off and pay a lower service tax, you should have records of all the invoices. Ensure that those who have billed you are registered and have invoiced you specifically for service tax.

Verification: The proof of payments, which include service tax, should be maintained for audit and reconciliation with invoices. Your invoices to clients represent your service tax dues, while your vendors' invoices represent your service tax credits.

Points to note
* Service tax and education cess are treated as separate items and the setting off applies separately for each of these heads.
* If any part of the service is not subject to service tax, it should be invoiced separately, both by you and your vendors.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Vision

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions