Service tax return

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 September 2016 Distribution Services for the month of April We recd. Brokerage on 13 May Amt of Rs.50000/-and paid service tax on 2nd June 2016
Services For the month of May Brokerage Recd on 13 June Amt of Rs.55000/- & paid service tax on 2nd July
Please tell me which is correct method ? In the month of April which amount should be a taken?

Distribution Services Date OF Receipt Date OF Invoice Amt
APRIL 10-May 10-May 50000
MAY 12-Jun 12-Jun 55000
JUNE 11-Jul 11-Jul 40000
JULY 10-Aug 10-Aug 50000
AUG 09-Sep 09-Sep 55000
SEPT 13-Oct 13-Oct 40000

Method-I
FOR SERVICE PROVIDER
S.No. Apr/Oct May/Nov June/Dec July/Jan Aug/Feb Sep/Mar Total
(I) SERVICE TAX PAYABLE
(a) Gross Amount received in money
(i) Against service provided : 50000 55000 40000 50000 55000 40000 290000
(ii) In advance for service to be provided : 0

Method-II
FOR SERVICE PROVIDER
S.No. Apr/Oct May/Nov June/Dec July/Jan Aug/Feb Sep/Mar Total
(I) SERVICE TAX PAYABLE
(a) Gross Amount received in money
(i) Against service provided : 0 50000 55000 40000 50000 55000 250000
(ii) In advance for service to be provided : 0

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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26 September 2016 In view of total service for the year less than 50lacs and service tax paid on receipt basis method II is the right method.

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Querist : Anonymous

Querist : Anonymous (Querist)

26 September 2016 Thank u Sir..Kindly explain in detail.Which rule applicable for the above method. If the total service for the year more than 50 Lacs then which rule is applicable

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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27 September 2016 As per point of taxation rules service tax payment can be made on receipt basis, if service tax payment for a year less than 50 lacs. More than 50 lacs it has to be paid on accrual basis.

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