Service tax liability

This query is : Resolved

pankaj (Querist)
Follow

29 April 2015 I received a builty from transporter and I didn't pay anything to him in the month in which I received a builty. I paid the same builty amt in the next month to the transporter. so my question is that when my services tax liability will arrive should I paid it subsequent month of builty received I.e. 6th of the next month of builty received or subsequent month of payment made against the same builty. Please advise thanks

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)
Follow

30 April 2015 Subsequent month of payment made....

Wait for some more expert view

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)
Follow

30 April 2015 You hadn't entered anything in books na before the payment made ??

Vishakha Kejriwal.

Vishakha Kejriwal. (Expert)
Follow

30 April 2015 As per Rule 7 of the Point of Taxation Rules the liability to pay service tax under reverse charge arises on the date on which the payment is made or the first date that occurs immediately after three months from the date of invoice.
In view of the aforesaid the point of taxation in your case would be the subsequent month of the month of payment, rather then the previous month in which the builty is received.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now