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Confuse about recpt and accural basis

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This query is : Resolved

Abbas (Querist)

19 April 2012 in my co. we have paid service tax on receipt basis and even on the advance recd, but we have nt raise the invoice. now we are goin to raise the invoice so we have to pay service tax again??? pls comment

Anwar Khan

Anwar Khan (Expert)

20 April 2012 Dear Abbas

you can pay balance service tax after deduction service taxwhich you have already paid
means

supposed you make a contract on dated 01.04.11 of rs 1,00,000 and recd a advanced of rs 50,000 on dated 15.04.11 and finally you completed a contract on dated 15.05.11 and raised a invoice of rs 1,10,300 (including services tax )

Sol:- you have recd advanced of rs 50,000 in April month then you have pay services tax of rs 5150 on 50,000 of april month

after completion of contract bill raised you
of rs 1,10,300 now your liabilities are 5150 of may month bcz you have already service tax paid of advanced

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