Service tax liability in which Financial year

Save Share

This query is : Resolved

KIYOSH MEWADA (Querist)

20 April 2009 We have raised invoice to our customer on 01-03-09 amounting to Rs. 55,150/- (Including Service tax @ 10.30%).

Customer booked expenses in their books & debited an amount of Rs. 1136/- towards TDS (@ 2.06%). We have recd TDS certificate but till 31-03-09 they have not released balance payment of Rs. 54,014/-.

Please guide me, whether our liability to pay service tax is arise in Financial Year 2008-09 or NOT

KIYOSH

Manmohan ACA, CS

Manmohan ACA, CS (Expert)

20 April 2009 service tax liability occures on actual receipt of tax

Shyam Lal Naik

Shyam Lal Naik (Expert)

21 April 2009 TDS is a constructive payment. If we interpreate tds as receipt, you need to pay Rs. 106/-(10.3 X 1136 / 110.3) in FY 08-09.

How ever, normally, tds certificated are received after the end of Financial year. Taking a liberal view, the tax payble should arise in FY 09-10.

Since two views are possible, you should seek more opinion.

Brij Bhushan Sangal

Brij Bhushan Sangal (Expert)

21 April 2009 Service tax liablity is raised on actual receipt basis. once payment will received, you will relised you liablity with that month service tax dues.

KIYOSH MEWADA

KIYOSH MEWADA (Querist)

21 April 2009 Thank you very much.

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