Diff. Account procedure follow

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VINAY (Querist)
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03 July 2010 Dear Sir/Madam

My self i m consultant Engineer, i have taken service tax reg. no. but presently my busines approx. 8-9 lac per anum & i invoice raise to customer as consultancy without service tax so pls. clear my following querries

1. I have S.Tax reg. No. but my business below servcie tax limit then wil i do service tax return deposit ??

2. If Yes then is this possible i follow in Accounting Marcantile basis but i want service tax deposited when i recd amount from Customer (cash base)

3. because we raise to bill customer but sometimes customer not to pay full payment he deduct 25 to 30% amount from bill against excess rate or whatever

so pls. clear my querry

thnx n regards

Shyam Lal Naik

Shyam Lal Naik (Expert)
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03 July 2010 Please refer to the answer to the similar query.I would just like to add that the exemption limit of Rs. 10 Lakh also is to be computed under cash basis. The accounting turnover may not exceed Rs. 10 Lakh, but the receipt may exceed.

For Example :

Year 0 : Bill Raised Rs 9 Lakh, receipt 6 Lakh, Debtor = Rs. 3 lakh

Year 2 : Bill Raised Rs. 9 Lakh, Receipt Rs. 11 Lakh, Debtor = 1 Lakh(3 Lakh + 9 Lakh - 11 Lakh)

There will arise tax liability on Rs. 1 Lakh in Year 1.

VINAY

VINAY (Querist)
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05 July 2010 but still my querry stand