Professional Fees Receipt Payment base account

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This query is : Resolved

Piyush Doshi (Querist)

12 August 2010 I maintain my account on receipt & payment base, so i account only when my services due received from client. In this case I liable to pay service tax as and when payment received to me from party or when i issue professional fees invoice to party ?

If i have received less amount from party, than, Can Iadjust against my payable service tax ?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

12 August 2010 Service tax need to pay on receipt basis only. if you received less, make a credit note and can be adjusted in Service tax also

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)

13 August 2010 Agreed.. The liability of service tax is ascertained on the basis of actual receipts only & not on the basis of bill raised.

Further, if at anytime, service tax is being paid on receipt basis, & lateron it is noticed that you have received any excess amount from a client & you need to refund that, in that case you can adjust the service tax paid on such excess payment in your service tax payable amount.

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