Service tax liability against year end provisions

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CA Hemraj Zambauliker (Querist)
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08 April 2009 Assessee is a manufacturer receives services from non resident. he pays technical fees & commission to non resident. he got registered for consultancy engineering services & Business Auxiliary Services(as service receiver). He make regular payment of service tax as & when he remit this charges. at year end he doesnt pay any amount towards this but simply makes provision for these expenses, in this case he has to pay service tax to credit of government or he can postpone it to actual payment of consultancy charges & commission kindly advise

SIDDHARTHA SANKAR ROY

SIDDHARTHA SANKAR ROY (Expert)
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08 April 2009 Under normal circumstance the liability would arrise only when the payment for the services are made. But if the service providers and service receivers are associated enterprises, the liability would arise the date on entry is made in the receipent's books of account .

SIDDHARTHA SANKAR ROY

SIDDHARTHA SANKAR ROY (Expert)
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08 April 2009

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