Hi Respected People,
I am a housekeeping service provider and have been charging service tax to my clients. However, I have not registered for service tax. I am paying income tax and completing all necessary returns.
My doubt is, even though I charge service tax to my clients, I am not remitting it to the tax department. Will the service tax department discover this, considering I am not registered for it? Will I face any problems in the future? Please help. (Paying service tax would mean no profit for me.)
I am considering registering for GST. Is that the right course of action?
From India, Bengaluru
Acknowledge(0)
Amend(0)
I am a housekeeping service provider and have been charging service tax to my clients. However, I have not registered for service tax. I am paying income tax and completing all necessary returns.
My doubt is, even though I charge service tax to my clients, I am not remitting it to the tax department. Will the service tax department discover this, considering I am not registered for it? Will I face any problems in the future? Please help. (Paying service tax would mean no profit for me.)
I am considering registering for GST. Is that the right course of action?
From India, Bengaluru
Acknowledge(0)Amend(0)
if any of your client intends to take input credit on your submitted bill, then you will face the heat. your activity is purely wilful evasion of taxes and duties,
Acknowledge(0)Amend(0)
651Acknowledge(0)Amend(0)
Without your Service Tax Registration Number printed on your invoice, your vendors should not have made Service Tax payments to you. Service Tax claimed should have been remitted timely to the Service Tax Department. Please stop this practice forthwith. Whatever Service Tax claimed, please refund to your vendors immediately. By the way, is your annual turnover less than 10 lakhs?
---
From India, New Delhi
Acknowledge(0)Amend(0)
---
From India, New Delhi
Acknowledge(0)Amend(0)
Instead of claiming Service tax, it is better to change it to Service charges for that effect and pay income tax on that income if you want to make a profit. Central excise people are ruthless; they go to any extent to strip you. Income tax people will have consideration but not central excise. Hence, follow what US Sharma and Srinath have advocated.
From India, Chennai
Acknowledge(0)Amend(0)
From India, Chennai
Acknowledge(0)Amend(0)
It is a big mistake by the clients who are approving and releasing payment to your service tax amount. In a proper Service Invoice, the Service Tax No. must be mentioned. Before allowing to pay Service Tax, your client should ask you to submit ST Regn. Copy. I check and process more than 200 service-related invoices every month, but before allowing any govt levy, we ask the vendor to submit the concerned Regn. Copy.
Since you provide H/keeping services, which reflects your client is not taking Service Tax Input (being an end user, maybe). For them, the Service Tax is part of the cost, hence not taking it seriously.
However, what happened is "Past," as suggested by Mr. Ramjeedurai change the same to Service Charge. If your annual turnover is less than 10 lakhs, change all previous invoices as well, duly mentioning the "Service Charge". If you have a good relationship with your client contact person, share the same to avoid any industrial dispute. This will help you to maintain a good client.
Fellow members can shed more light on the matter.
From India, Delhi
Acknowledge(0)Amend(0)
Since you provide H/keeping services, which reflects your client is not taking Service Tax Input (being an end user, maybe). For them, the Service Tax is part of the cost, hence not taking it seriously.
However, what happened is "Past," as suggested by Mr. Ramjeedurai change the same to Service Charge. If your annual turnover is less than 10 lakhs, change all previous invoices as well, duly mentioning the "Service Charge". If you have a good relationship with your client contact person, share the same to avoid any industrial dispute. This will help you to maintain a good client.
Fellow members can shed more light on the matter.
From India, Delhi
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.