Cenvat credit

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CA Nayan Ratandhayara (Querist)
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17 August 2011 Hi,

I have one query related to Service tax payment and cenvat credit is as follow :-

I am working in an advertising company, which normally pay and receive amount in advance to channels and clients respectively. And we use to pay service tax on the basis of receipt and payment. But due to change in service tax rule, now we have to pay service tax on the billing basis.
The main question is that we have paid service tax for the quarter ending March-11 on the basis of receipt and payment, in which we have take the advance received and paid for the month of April-11.

And now as per new ruling we have to pay service tax on the billing basis from Apr-11. So by going on this ruling, The advance received in march for April are being taxed twice, one we have paid as per receipt/ payment in march-11 and other in Apr-11 on the basis of Billing.

So can any one help on this issue ? Is there any notification under which we can save this double taxation???

U S Sharma

U S Sharma (Expert)
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17 August 2011 upto june 2011, the transitional provisions are in force, where the advance received earlier/ st paid but billed later has not to pay again. but from july 2011, its strictly on payment/billing basis which ever is earlier.

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