Hi Respected People,
I am the housekeeping service provider. And I have been charging the service tax to my clients however, i have not registered for service tax. But I am paying the income tax and doing all sorts of returns.
My doubt is, though i charge service tax to my clients, I am not paying it to service tax. Will service tax department get to know about this, though i have not registered for it? or will I face any other problem in future. please help. (If i pay service tax i will have no profit)
I am planning to register for GST, is that okay?
From India, Bengaluru
I am the housekeeping service provider. And I have been charging the service tax to my clients however, i have not registered for service tax. But I am paying the income tax and doing all sorts of returns.
My doubt is, though i charge service tax to my clients, I am not paying it to service tax. Will service tax department get to know about this, though i have not registered for it? or will I face any other problem in future. please help. (If i pay service tax i will have no profit)
I am planning to register for GST, is that okay?
From India, Bengaluru
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,
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without your Service tax Registration Number printed on your Invoice, your Vendors should not have made Service Tax payment to you.Service Tax claimed should have been remitted timely to Service tax Dept.Please stop this practice forthwith.What ever ST Claimed ,please refund to your vendors immediately.By the way is your less than 10 Lakhs Per Annum?
From India, New Delhi
From India, New Delhi
Instead of claiming Service tax it is better change it to Service charges to that effect and pay income tax on that income if you want to make 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
From India, Chennai
It is a big mistake by the clients who is 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 concern Regn. Copy.
Since you provide H/keeping services which reflects your client are not taking Service Tax Input (being end user, may be). 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 laks, change all previous invoices as well duly mentioning the "Service Charge". If you have good relation with your client contact person, share the same to avoid any industrial dispute. This will help you to maintain good client.
Fellow members can put more light on the matter.
From India, Delhi
Since you provide H/keeping services which reflects your client are not taking Service Tax Input (being end user, may be). 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 laks, change all previous invoices as well duly mentioning the "Service Charge". If you have good relation with your client contact person, share the same to avoid any industrial dispute. This will help you to maintain good client.
Fellow members can put more light on the matter.
From India, Delhi
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