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Payment on cash basis of service tax

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Querist : Anonymous

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Querist : Anonymous (Querist)
16 February 2015 Dear Sirs


A Prop. firm having turnover of less than 50 lacs , was paying service tax on accrualbasis till Sep. 2014. now my question is





1. Can it switch to cash basis from Oct 2014 ?


2. If yes then what happens of payment received in Nov. 2014 for bills raised before 30.09. 2014 on which tax was paid on accrual basis ?

16 February 2015 Reply to Query 1: Yes you can switch, because rules nowhere restrict.

Reply to Query 2: if bills on which tax paid on accrual basis and payment received in November 2014, then no need to charge tax and no need to show in ST-3.

The reason for not showing in ST-3 because you have already reported that turnover in April to September return.


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