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Service tax to be charged on billed amount or recieved amoun

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Querist : Anonymous

Querist : Anonymous (Querist)

24 January 2012 Billed amount is 1000 and service tax on invoice is 103.

Amount recieved is 700.

Under cash systsem, service tax payable is

Rs 72.1

or

Rs 65.36

Plz guide.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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24 January 2012 Rs.65.36/- it will be back calculate the actual received value under cash system

CA Nikhil Jhanwar

CA Nikhil Jhanwar (Expert)
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24 January 2012 Liability of service tax has nothing to do with method of accounting system followed........Now w.e.f 01.07.2011 point of taxation will be the date of issue invoice if it is raised within 14 days of completion of service......If invoice is not raised within 14 days then date of completion of service will be the point of taxation.

IN your case depending on the nature of case service tax will be calculated....Further amount of Rs. 65.36 is not correct if it is assumed that amount of Rs. 700 you have received is not in full & final settlement......

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