Services specified for receipt basis or accrual basis
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
04 July 2015
Dear Sir,
I Have a query regarding service Tax that Which are the services specified for Receipt Basis or Accrual Basis. I Know that for Accrual Basis limit is Rs. 50 Lakh but i want to know that this limit is for all services or for some specified services. Please Let me know.
Thanks
Gaurav Chauhan
I Have a query regarding service Tax that Which are the services specified for Receipt Basis or Accrual Basis. I Know that for Accrual Basis limit is Rs. 50 Lakh but i want to know that this limit is for all services or for some specified services. Please Let me know.
Thanks
Gaurav Chauhan
Querist : Anonymous
Querist :
Anonymous
(Querist)
11 September 2015
Dear Sir, I Have a query regarding service Tax that Which are the services specified for Receipt Basis or Accrual Basis. I Know that for Accrual Basis limit is Rs. 50 Lakh but i want to know that this limit is for all services or for some specified services. Please Let me know. Thanks
Gaurav Chauhan
Gaurav Chauhan
25 July 2025
Hi Gaurav,
Regarding **Service Tax payment on Receipt Basis vs Accrual Basis**, here’s the clarity you need:
---
### 1. **Accrual Basis (General Rule)**
* Normally, **service tax is payable on the value of taxable services "on accrual basis,"** i.e., when the service is provided or invoice raised, whichever is earlier.
* This applies **to all services** by default.
---
### 2. **Receipt Basis (Optional Scheme for Small Taxpayers)**
* **Receipt basis means service tax is paid only when payment is actually received from the customer.**
* The **Government introduced an optional scheme to pay service tax on receipt basis for certain services and eligible service providers.**
---
### 3. **Eligibility & Limit for Receipt Basis**
* This option is **available only to service providers whose aggregate value of taxable services is up to Rs. 50 lakh in the preceding financial year.**
* This **limit of Rs. 50 lakh is for all taxable services combined**, not per service.
---
### 4. **Services Allowed for Receipt Basis Payment**
* **Not all services qualify** for receipt basis payment.
* **Specified services under Rule 6(3) of the Service Tax Rules, 1994**, are eligible.
* Some of the common eligible services include:
* Transport of passengers by stage carriage, contract carriage, or radio taxi
* Services provided by travel agents
* Services by advocates
* Services by arbitral tribunals
* Services by Chartered Accountants
* Services by Property Dealers
* Services provided by Restaurants, etc.
* (This list is illustrative; you should check the latest notifications or Rule 6(3) for exact list.)
---
### 5. **Services NOT eligible for Receipt Basis**
* Generally, services like **Banking, Insurance, Telecom, and others** are **not eligible** for receipt basis payment.
---
### Summary:
| Payment Basis | Applicable to | Limit | Services Covered |
| ------------- | --------------------------------------------------- | -------------------------- | ----------------------------------- |
| Accrual Basis | All taxable services | No limit | All services |
| Receipt Basis | Only eligible service providers with turnover ≤ 50L | Rs. 50 Lakh (preceding FY) | Specified services as per Rule 6(3) |
---
If you want, I can help you with the exact list of services eligible for receipt basis or provide the relevant Rule references.
---
**Would you like me to share the official rule and notification links?**
Regarding **Service Tax payment on Receipt Basis vs Accrual Basis**, here’s the clarity you need:
---
### 1. **Accrual Basis (General Rule)**
* Normally, **service tax is payable on the value of taxable services "on accrual basis,"** i.e., when the service is provided or invoice raised, whichever is earlier.
* This applies **to all services** by default.
---
### 2. **Receipt Basis (Optional Scheme for Small Taxpayers)**
* **Receipt basis means service tax is paid only when payment is actually received from the customer.**
* The **Government introduced an optional scheme to pay service tax on receipt basis for certain services and eligible service providers.**
---
### 3. **Eligibility & Limit for Receipt Basis**
* This option is **available only to service providers whose aggregate value of taxable services is up to Rs. 50 lakh in the preceding financial year.**
* This **limit of Rs. 50 lakh is for all taxable services combined**, not per service.
---
### 4. **Services Allowed for Receipt Basis Payment**
* **Not all services qualify** for receipt basis payment.
* **Specified services under Rule 6(3) of the Service Tax Rules, 1994**, are eligible.
* Some of the common eligible services include:
* Transport of passengers by stage carriage, contract carriage, or radio taxi
* Services provided by travel agents
* Services by advocates
* Services by arbitral tribunals
* Services by Chartered Accountants
* Services by Property Dealers
* Services provided by Restaurants, etc.
* (This list is illustrative; you should check the latest notifications or Rule 6(3) for exact list.)
---
### 5. **Services NOT eligible for Receipt Basis**
* Generally, services like **Banking, Insurance, Telecom, and others** are **not eligible** for receipt basis payment.
---
### Summary:
| Payment Basis | Applicable to | Limit | Services Covered |
| ------------- | --------------------------------------------------- | -------------------------- | ----------------------------------- |
| Accrual Basis | All taxable services | No limit | All services |
| Receipt Basis | Only eligible service providers with turnover ≤ 50L | Rs. 50 Lakh (preceding FY) | Specified services as per Rule 6(3) |
---
If you want, I can help you with the exact list of services eligible for receipt basis or provide the relevant Rule references.
---
**Would you like me to share the official rule and notification links?**
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