Service tax Liability
This query is : Resolved
01 June 2010
Hi
We raised a bill for USD 1000 on 01.03.10 @Rs45/$. for Rs.45000/-, we received Amount on 30.04.10 @Rs48/$. Rs.48000/
so my Query is on which amount I have to pay service tax i.e Rs.45000 or Rs.48000.
because liability of Service tax aries when bill was raised but actual payment is required to be made on receipt of Payment.
also wthat is accouting if requied to pay on Rs.48000/-
Thanks
CA Ravi Sodani
We raised a bill for USD 1000 on 01.03.10 @Rs45/$. for Rs.45000/-, we received Amount on 30.04.10 @Rs48/$. Rs.48000/
so my Query is on which amount I have to pay service tax i.e Rs.45000 or Rs.48000.
because liability of Service tax aries when bill was raised but actual payment is required to be made on receipt of Payment.
also wthat is accouting if requied to pay on Rs.48000/-
Thanks
CA Ravi Sodani
01 June 2010
Service tax is to be paid on receipt basis only but here your service is only Rs.45000 whereas Rs.3000 what you got is exchange fluctuation amount which is not subject to service tax. Suppose if you had received only 44000 due to lower rate then also you should pay on Rs.45000 which has been realised.
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