Service Tax payment liability

This query is : Resolved

Deepak Agrawal (Querist)
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08 April 2010 Hi

I have raised a service bill to customer and i have booked income.

So tell me, as per law, when i am liable to pay service tax liability to government. At the time of booking sales (income) or when i will receive amount from customer. Please send me link for the same, if any)

CA Gangadhar Mishra

CA Gangadhar Mishra (Expert)
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08 April 2010 Service tax is to be paid on receipt basis not on accrual basis.

Guest

Guest (Expert)

08 April 2010 Agreed with Mr. Mishra, but if branch company relations (Sister concern companies) is there then definitely it's S.Tax is to be paid on accrual basis.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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08 April 2010 Service Tax payment should be on receipt basis only and not on accrual

CA Ashok Kumar Sahu

CA Ashok Kumar Sahu (Expert)
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08 April 2010 AGREE WITH EXPERT

CA Suresh Choudhary

CA Suresh Choudhary (Expert)
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08 April 2010 Agree with Experts

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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08 April 2010 agreed service tax on receipt basis

Deepak Agrawal

Deepak Agrawal (Querist)
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09 April 2010 It means we have to pay service tax on advance recd for the services to be provided after 3 month

Guest

Guest (Expert)

09 April 2010 Yes.

Deepak Agrawal

Deepak Agrawal (Querist)
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16 April 2010 But why we should pay now. Since i have not yet rendered service.

I read as:

If the charges for the service have been received in advance prior to rendering of the services,the tax is payable in proportion to the extent of services rendered by them.

Deepak Agrawal

Deepak Agrawal (Querist)
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