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Payment of service tax

mayank sharma (proprietor) (24 Points)

10 April 2012

we genraly recive payment late from companys some time 7 to 8 month after raising bill

manpower supply servises then how can we pay tax for that is there any sytsem for that

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5 Replies

Satish (CA Final Student) (479 Points)
Replied 10 April 2012

Mayank,

Your difficulty is now eased by the Finance Minister in this budget. You just need to wait till the enactment of the Finance bill & the date of applicability by way of notification. After enactment, out of total service tax liability, 75% will be payable by the recepient of service i.e. your client & 25 % will be payable by you. So your cashflow will not be hampered to the extent of 75% of the total liability.

Ramanuj (Accountant.) (834 Points)
Replied 11 April 2012

agree with Mr. Satish

CA Ganesh Karthik (Chartered Accountant) (368 Points)
Replied 11 April 2012

Agree with Mr. Satish. But thats only in case of Manpower recruitment and few other services given in the notification.

However, for the other services, the problem still continues.You have to pay on accrual basis and cannot wait for receipt. No remedy as of now!

DIBYENDU (SERVICE) (266 Points)
Replied 11 April 2012

Service Tax Is payble to the Government at the time of when it is realise from receiver i.e. Client , Realisation basis, So, When you realise the amount you pay Service Tax On It, Instaied of total billing amount.

shyamal dutt (head) (21 Points)
Replied 12 April 2012

Hi!

for all purposes, in my opinion, service tax is to be paid on accrual basis and not on cash basis. so, you need to pay the service tax to the government on or before 5th of the month that comes immediately after the month in which the bill has been raised.