jtd wrote:
On Sunday 31 May 2009, Rony wrote:
jtd wrote:
On Saturday 30 May 2009, Rony wrote:
While he is mentioning that he is getting bills, he hasn't yet mentioned what exactly they charged him for, as the amount he mentions does not tally with his monthly rental. Anyway it is his choice. Many a times, the first bill contains an advance rental for the next month. Even with zero rental bills, the amount is deducted only after the bill + taxes is made. For eg. If a Rs. 1750/-. rental is waived off, they add the 12.5% service tax to it and on the final amount of Rs. 1968/- deduct Rs. 1750/- which means a bill of Rs 219/-. They pay our rental (For the free period) but we pay its tax as that is not free.
Whoever pays the rent pays the tax. If you paid tax, you must get a tax receipt, cause you are entitled to setoff.
Afaik you are mistaken, cause Reliance cannot claim tax on zero bill.
Rental being free does not automatically imply that tax on it is free.
It does. No rental charge, No tax on rental.
A CA would be able to unravel this mystery. The bill and the cheque payment is proof of tax paid and can be used for accounting purposes.
The bill has to mention the tax as a separate component.
If you pay cash at the Webworld, you get a stamped receipt. In my mobile, I am on a zero rental scheme where I get free talk time equal to my rental amount.
So zero rental = zero talk time?. No. It means you pay rental X and get free talk time = X. And you get a tax charge for X.
The tax componet is seperate.
My bill has many components like sms usage, surfing etc and on the final amount after tax is added, I get the discount for my local and std calls.
So SMS = X Surfing = Y Local call = Z Discount on Local call z Actual charge on Local call = Z-z Tax = 10 % Total =1.1 * ( X + Y + Z-z ) Not Taxable amount = 1.1 * ( X + Y + Z ) Less discount = (1.1 * ( X + Y + Z )) -z
What I get is X + Y + Z + R = T (Total usage + Monthly Rentals ) Tax = 12% of T. New total = T + Tax = TT Final amount F = TT - Free Talktime Discount
I had a spat with HSBC (one of the worst disorganisations i have ever come across in my entire life anywhere in the world - and i have been to some real hell holes), on precisely this issue, where they tried to charge me late payment charges inspite of payment being made on time, then reversing the charge, but not the tax because they had paid the tax. Told them that they have to claim a refund, cause they cannot charge me tax on an amount that i have never paid. It is ILLEGAL.
In your case charging the late fee itself was wrong so they wrongly paid the tax and that's their problem. You can't be charged for it.