Mukesh (C) (170 Points)
03 October 2013For Charging interest on service tax, invoice to be raised for the interest amount or debit note or voucher. Customer not paid the service tax for the previous period, now paying the service tax amount, Company is depositing the service tax amount with interest to the department now.
So, customer is asking invoice for the interest amount. What will be the correct solution.
Aniket Gupta
(Accountant )
(81 Points)
Replied 05 October 2013
a customer never liable to pay service tax or can be a reason to you for late service tax depositing.
so you cant raise any bill to you customer for interest however if any remittance related with st then you can issue a bill.
DUE TO service tax are levied on cash basis not credit basis if you have received any amount from your customer then you have to pay st within the time period if any delay to deposit these amount , you solely liable to pay interest on service tax.
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
CAclubindia
