Service tax

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seema (Querist)

24 June 2013 As per service tax rules service tax liability accrues on which date? when a services is rendered and no invoice is made within 14 days of completion of service and no payment is received.
If answer is on the date of rendering of service then we have to pay service tax to the gov. without receiving it from client.
Afterwords if we cant recover any amount from client then what to do??

CA Priti Surana

CA Priti Surana (Expert)

26 June 2013 Miss Seema, practical is much more different from Books. In general practice we do not see the date of completion of service, What we see is the date of invoice or if thr is any advance payment. Yet if u want to consider the date of completion and pay tax as per tat date, and subsequently u dont get the payment, u can set off that tax with ur further liability if any.

vikas Manglani

vikas Manglani (Expert)

26 June 2013 Miss Seema,

AS per my knowledge invoice if issued within 30 days from the date of completion of service, if not issued then date of completion will be taken as effective date.

vikas Manglani

vikas Manglani (Expert)

26 June 2013 i.e. if invoice issued within 30 days - date of invoice

and if not issued within 30 days - date of completion

seema

seema (Querist)

26 June 2013 sir
there is no time limit of 30 days as per service tax rules

vikas Manglani

vikas Manglani (Expert)

26 June 2013 Please check rule 4A of service tax rules updated

vikas Manglani

vikas Manglani (Expert)

26 June 2013 https://www.servicetax.gov.in/st-rules1994-janfeb2013.pdf