28 December 2014
We have raised provisional invoices to our client but payment for the same is not received till end of the quarter third,so please tell me whether we should pay the service tax liability or not??
if case we have paid the service tax amount and in future didn't received any amount, can we adjust the same with the future service tax liability??
or should we considered the same invoice on actual receipt basis but our legal status is FIRM but hope it should not be in contradiction of provisions of rule 4A.
29 December 2014
Theoretically there is an optional of Provisional Assessment where if you not able to estimate your tax liability you can File for provisional Assessment in Form ST-3A.
But if you have completed the service then you have to raise the bill and on which you have to pay service tax even tough you can't recover the same amount from client.
As tax is on service and you have provide it , and there is no claim or adjustment can be made due to bad debt .
CAclubindia
