service tax after interest

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SHALINI LAMBA (Querist)
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24 March 2011 1) We are commission agents , we get commission after deduction of tds from our company and we pay service tax on it , interest charges are also deducted from our commission if the payment is received late by the company . Do we have to deduct this interest from commission and then pay service tax on it.
2) Do we have to pay service tax on accrual or receipt basis now?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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24 March 2011 Service tax has to be paid on receipt basis. The proposal in the Finance Bill ,2011 changing the method to accrual has been done away with for the time being.

SHALINI LAMBA

SHALINI LAMBA (Querist)
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24 March 2011 Thank you for the reply
please advice regarding interest to be deducted or not ?

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