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Service tax payment in case of part payment received

CA.Varalakshmi.M (Manager-Finance) (482 Points)

12 July 2012

Hi friends,

I have a doubt regarding service tax payment..

We need to pay service tax with in 5 days from the end of mnth in which amount received twds taxable services provided.

Now my doubt is if we receive half payment of invoice raised,do we pay service tax on whole amount or only to the extent of amount of amount received?????

What in case we receive advance payment from the client????we pay service tax only on advance payment or whole amount of service????//

Pls clarify....

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7 Replies

neeraj (CA) (930 Points)
Replied 12 July 2012

Pay on full amount and in case of advance payment pay on advance amount.

1 Like

Ketan Padsala (CMA-Final) (89 Points)
Replied 12 July 2012

In case of Individuals or Proprietary Concerns and Partnership Firm, service tax is to be paid on a quarterly basis. The due date for payment of service tax is the 5^th of the month immediately following the respective quarter ( in case of e-payment, by 6^th of the month immediately following the respective quarter). For this purpose, quarters are: April to June, July to September, October to December and January to March. However, payment for the last quarter i.e. January to March is required to be made by 31^st of March itself.

There for, As per New Rule You Have to Pay Service tax on Full Amount

1 Like

Ajit kumar Dubey (Taxation Manager) (637 Points)
Replied 12 July 2012

As per point of taxation rules, liability to pay service tax accrues only at the time of raising the invoice or at the time of receipt of money which ever is earlier. Hope it clears your doubt.

1 Like

P@R@G (Accounts Head & Final CA & CS) (79 Points)
Replied 12 July 2012

@ m.varalakshmi

pls find my input below

1. Now my doubt is if we receive half payment of invoice raised,do we pay service tax on whole amount or only to the extent of amount of amount received?????

as far as new notification concern w.e.f 1.7.2011 you no need to wait for payment received from client as soon as raise bill pay service tax in follwing month due date....so your qurry will get withdrawn wit this..

2. What in case we receive advance payment from the client????we pay service tax only on advance payment or whole amount of service????//

My friend neeraj is right pay on service tax as mch amt you received as advance.

1 Like

CA.Varalakshmi.M (Manager-Finance) (482 Points)
Replied 12 July 2012

Thanx a lot for the above reply

I have a doubt regarding Due date payment of Ap Vat.

I know that due date is 20th of the following mnth.

But my doubt is 20 days of what ????? it is with in 20 days following the mnth in which payment received? or account credited ? or Invoice raised?

Plz help...

Thq

Ajit kumar Dubey (Taxation Manager) (637 Points)
Replied 12 July 2012

Principally, liability to pay VAT is at the time of raising the tax invoice. SO, under AP VAT, the due date for payment of VAT liability is 20th of the following month in which the tax invoices are raised.