Confused About Service Tax Payments for Recruitment Firms? Need Urgent Help!

Hello, Everyone.

Please help me out to solve my query. I need to make service tax payment on behalf of my company, which is a recruitment firm. We raise invoices to our clients for the placement services, and it is inclusive of 10.3% service tax. My queries are:

1) While paying Service Tax, do we need to pay 10.3% of the professional fee which has been added in the invoice only?
2) Is there any change in service tax payment when TDS is deducted from the total invoice amount?
3) How to calculate the late fine if we make payment in September 09 (since it's due from last April 09)?
4) Should the date to be considered be the invoice date or the payment receipt date?

Seeking your help. Please reply, it's very urgent.

Regards,
Sangeeta

I need to prepare an invoice for design work for a client in Abu Dhabi. In this invoice, it is necessary to include a service tax of 10.3%. What is the procedure for raising the invoice for a client from outside the country?

Hello Sangeetha,

1. We have to make service tax payments for bills for which we have received payment only and not the bills due.
2. No. When you raise a bill for Rs. 100/-, the service tax is Rs. 10.3/- and the TDS amount is Rs. 10/- (@10%). There is no change in the service tax amount.
3. The late fee calculation is based on days. It is calculated as follows: (period after the due date till payment / 365 days) x Service Tax amount x 13%.
4. Payment receipt date is considered.

1) If the service receivable is more than the service tax payable for the month, is it required to pay any service tax?

2) In the case where the service receivable is from BAS & Customs clearance service, and the service tax payable (billed) is in a single service not separated into different service categories, should I take a set-off against it?

3) In the above second case, for which services head should I pay the service tax? Against BAS or Customs clearance service or BSS service?

4) If my receivable service is more than payable services due to receiving services from local companies and billing to overseas companies (like UK and US), should I take a set-off against that receivable service tax against my other payable service tax?