When the liability to service tax arises
This query is : Resolved
09 January 2013
if the bill was raised in 25/03/2011 and its amount is received on 25/02/2012 then what are the treatments in service tax? plzz help
09 January 2013
Under Section 67, Service tax is levied on the gross or agreegate amount charged by the service provide to the receiver.
Under Rule 6(1)(b) of the point of Taxation Rules, 2011, where the person providing the service, receives a payment before the time specified in clause (a), the time, when he receives such payment to the extent of such payment.
Hence,considering Rule 6 (1), in the above case, the invoice raised is preceeding the receipt of payment. Hence, Service tax has to be remitted on 5th April 2011 though the payment would have been received in Feb'12, which is almost one year from the date of raising of invoice.
Under Rule 6(1)(b) of the point of Taxation Rules, 2011, where the person providing the service, receives a payment before the time specified in clause (a), the time, when he receives such payment to the extent of such payment.
Hence,considering Rule 6 (1), in the above case, the invoice raised is preceeding the receipt of payment. Hence, Service tax has to be remitted on 5th April 2011 though the payment would have been received in Feb'12, which is almost one year from the date of raising of invoice.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- STCG....................................................
- TAN for Partnership
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- Sales return eway bill
- Loan by Partnership Firm
- TDS related Query_Liquidated Damages
- Is it compulsory to File 10E if Income including Pension Arrears is below 12 Lakh for the F Y 25 26
- AY 26-27 ITR-4 FILING U/S 44-ADA
- Plot of land. Cost of Acquisition
- Free lancer income
- Long Term Service award taxability in hands of company
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
