Pvt. ltd. company providing architect services

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 October 2011 Dear Sirs,

My client is a Pvt. Ltd. Company providing Architect Services.

As per department clarification vide Letter no. F.No. 341/34/2011-TRU dated 31/3/2011, INDIVIDUALS, PROPRIETORSHIPS & PARTNERSHIP FIRMS providing specific services (Chartered Accountants,Cost Accountant,Company Secretary,Architect, Interior Decorator, Legal, Scientific and Technical Consultancy Services) will continue to pay service tax receipt basis instead of accrual basis even after 1/7/2011.

Is my client (A PVT. LTD. COMPANY) required pay service tax on billing basis or on receipt basis?

Thanks

PUNEET GOYAL

PUNEET GOYAL (Expert)
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09 October 2011 The above said circular is very clear that only individual, proprietorship firms and partnership firms will continue to pay service tax on receipt basis.

In your case, Pvt Ltd does not fall in above category and accordingly required to pay service tax on accrual basis.