We have been paying Service Tax on Billing basis for a period of time - but this needs to be changed to collection basis - my questions are -
1) Is this correct ?
2) What is the procedure for paying Service Tax on collection basis and also taking input on payment basis instead of booking basis
3) what should be the accounting entries concerned ?
4) what documents needs to be maintained for collection basis
Please help asap.
| Originally posted by :suman biswas | ||
| " | We have been paying Service Tax on Billing basis for a period of time - but this needs to be changed to collection basis - my questions are - 1) Is this correct ? 2) What is the procedure for paying Service Tax on collection basis and also taking input on payment basis instead of booking basis 3) what should be the accounting entries concerned ? 4) what documents needs to be maintained for collection basis Please help asap. |
" |
You are not entitled to avail the credit on accrual bais and therefore you maybe asked to pay interest for the early credits availed.
As far as payment in advacne on accrual basis, dept may not object as tax paid earlier.
What is required to be done is to prepare a reconciliation between the values and arrive at value on which advance payment made. In future as and when receipts are there confirm whether part of reco or not. If not pay the ST on the same.
As far as the credit is concerned, see which have been taken in advacne and reverse the credit. Avail only on payment.
Hi Madhukar sir
I have not understood.Please explain with example.
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