Service tax liability in which Financial year
This query is : Resolved
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
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
20 April 2009
service tax liability occures on actual receipt of tax
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.
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.
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.
21 April 2009
Thank you very much.
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