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Query on service tax

This query is : Resolved 

04 June 2013 Sir
If system accounting followed is cash then then, whether the service provider is liable to pay service tax only on cash basis or on billed amount.Please reply.

Thanks
SL Singh


04 June 2013 Hi,
Irrespective of your method of accounting you have to pay Service tax on accrual basis

05 June 2013 Its accrual or receipt whichever is earlier as per point of taxation.


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