Liability to pay service tax. Lessee is liable to pay Service Tax despite Liability of Lessor: SC 2019-01-20

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Reverse Charge Mechanism in Service Tax: A Complete Guide

liability to pay service tax

Sir, I am a Mutual Fund Distributor and earn commission. The registration charges, stamp duty, service taxes, etc. Please be aware of this problem before proceeding to file and pay your return using these updated browsers. The due date for payment of service tax is the 5th of the month immediately following the respective quarter in case of e-payment, by 6th of the month immediately following the respective quarter. In addition, each taxpayer shall also have an electronic tax liability register.

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Due Date for Payment of Service Tax & Int. on Late Payment

liability to pay service tax

. Section 35 8 prescribes an order of payment where the taxpayer has tax liability beyond the current return period. The aforesaid becomes important in the context of the nature of service tax which is a tax on the commercial activity and to that extent would, thus, fall within the parameters of Clause 9 d and not Clause 7. The Court, however, is not unmindful of the circumstance that service tax is a species of levy which the parties clearly did not envision, while entering into their arrangement. On the other hand, Shri Jaideep Gupta, learned senior counsel appearing on behalf of the Respondents, supported the judgments of the courts below.

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Income, Tax Liability & Payment

liability to pay service tax

Nonetheless, as part of legislation passed in 1994, Congress enacted a provision allowing unemployment recipients to voluntarily elect to have income taxes withheld from their unemployment benefits. The members of Congress speak and vote as representatives of all the people in their State or district, including those who did not vote. If the total tips that employees have reported total at least eight percent of total sales, then no additional requirements are imposed. Service tax is an indirect tax which is actually borne by the ultimate consumer. There are two categories in this rule of reverse charge mechanism i. The method of collection does not affect the essence of the duty, but only relates to the machinery of collection for administrative convenience. Payment of taxes by the normal taxpayer is to be done on monthly basis by the 20th of the succeeding month.

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What is Service Tax? and Who is liable to pay Service Tax?

liability to pay service tax

Definitions 1 In these rules, unless the context otherwise requires, — …. For example, Service Tax for the quarter April — June is payable on 6 th of July. The recipient of such service A director of the company or body corporate To the said company or the body corporate The recipient of such service. Milind raises an Invoice for Rs. Meaning and Levy As the name suggest, Service Tax is the tax on the taxable services provided by you. Let us now examine some of the judgments relating to another indirect tax, namely excise duty. Since 1966, tipped employees have been required to report the tip income that they receive to their employer.

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

liability to pay service tax

B is liable to pay to the government. Thus a contract has to be construed by looking at the document as a whole and the meaning of the document has to be what the parties intended to give to the document keeping the background in mind and conclusion that flouts business commonsense must yield unless expressly stated. 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. It is agreed by and between the Parties that the Lessor shall be liable to pay property taxes and other outgoings in respect of the Premises, whatsoever payable and as levied from time to time promptly and timely, including any revisions thereto, directly to the authorities concerned and no claim for contribution towards such taxes, cesses, levies and increases shall be made by the Lessor or be entertained by the Lessee. In order to submit a comment to this post, please write this code along with your comment: a6a38439a9f2add6270f81b2f90f8ba5. But since you are collecting service tax from customers and not depositing to government, it is an offence. Non applicability of Service Tax Exemption This small scale service tax exemption shall not apply in cases where.

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13 things to know about payment of Service Tax

liability to pay service tax

The parties agreed that the rates and taxes primarily leviable upon the occupier would be paid by the Government. In the given case, Mr. Finally, we make every effort to make certain that the information contained here is accurate, but due to the fluid nature of the legislative process, changes in tax laws may occur that are not reflected here at the time of publication. However, unemployment benefits are is designed to provide temporary income between employment. In both the cases the net outflows and net inflows remain the same.

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Ways to Pay Your Tax Liability

liability to pay service tax

If you file your federal tax return electronically you can schedule a payment at the time that you file. In pursuance of this power, the Central Government in Rule 2 1 d of Service Tax Rules, 1994 has notified specific class of persons who are liable to pay service tax. Regards Raman K Agarwal Sir, We are an Insurance Broking Company and receive commission from the Insurance Companies. Service tax is an indirect tax levied on certain services provided by certain categories of persons including companies, associations, firms, body of individuals, etc. You can schedule a payment in advance to pay your tax directly from your checking or savings account.

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13 things to know about payment of Service Tax

liability to pay service tax

Thus, in Tamil Nadu Kalyana Mandapam Assn v. Enter the Bank Allocation details, as applicable. Service tax is governed by Finance Act, 1994 and rules made there under. Generally, service tax is payable by the provider of Service. Supreme Court of India Government, though in the capacity of a lessor is liable to pay service tax on the rental income as per section 66B of the Finance Act, 1994 despite the fact that the original liability lies on the lessor. 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

The facts and circumstances in Income Tax Appeal No. Adjusting the Service Tax paid but the payment not recoverable later. As per section 37, this provision is meant for Government and Government undertakings and other notified entities making contractual payments in excess of Rs. It is thus clear that the judgments of this Court which referred to service tax being an indirect tax have reference only to service tax being an indirect tax in economic theory and not constitutional law. Hence the liability to pay service tax into the Treasury will arise only upon the assessee receiving the funds and not otherwise. But they refused to accept the payment siting reason that the challan generated is invalid as per their system.

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