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Receipt basis

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This query is : Resolved

Mayank Maheshwari (Querist)

24 October 2015 I deposit service tax on receipt basis, when i receive payment, subsequently assess ST. if in case I do not receive payment of a bill for 2 years, am i not required to pay service tax for 2 years?

SANJAY JAIN

SANJAY JAIN (Expert)

25 October 2015 The provisions of Point of Taxation Rules,2011 are very clear as to pay service tax on issuing invoice. In case the invoice is not issued with in 30 days, the liability shall arise on the date of completion of service. Though advance is received prior to invoice or completion of service,then it would be point of taxation. in such situation, the payment of service tax can not be delayed only for the reason of not receiving service amount.

Mayank Maheshwari

Mayank Maheshwari (Querist)

25 October 2015 assessee is individual, and his taxable turnover in last year was less than 50 lac, so he is having an option to pay service tax on receipt basis. now advise on situation.

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