Disallowance of service Tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 August 2010 We are service providers and we collected service tax from parties and have'nt paid to the govt. now if we not paid it till filling of our returns then we will have to add it to income and pay tax on it.
My question is that till what time we can pay it to govt so that we do not pay income tax on it?
The company is not in audit can we pay service tax before filling of returns and dont consider it in income?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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08 August 2010 It depends on the method of accounting employed. If the service tax collected(separate folio in ledger is also required) is directly taken to balance sheet, and not routed through the profit and loss account,question of disallowance does not arise.

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