when is service tax on output service to be paid?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 May 2010 input service tax credit can be claimed only when the payment for the bill has been made. what is the provision with regards to the output service tax payable. is it to be paid after the amount for the bill raised has been received or it is to be paid by the end on the month/quarter of making the sale bill to the party?
the firm, pays excise as well as service tax. input service tax credit is utilised for payment of excise duty as and when the payment of bills having service tax is made and output service tax is paid in full. whether output service tax is to be paid on receipt of amount from the party(as in case of input service tax) or on booking the sale?

Shyam Lal Naik

Shyam Lal Naik (Expert)
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11 June 2010 Output service tax is to be paid on receipt of amount from the party.

If part payment is received, service tax on that portion has to be discharged considering the receipt as cum-tax amount.

Even, receipt in advance is subject to service tax.

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