Payment of Service Tax

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Company A - main activities are a) repairs and services in which they use some spare parts and b) selling spare parts. Various bills are combined in which sale of services and sale of goods are mention. A single customer may have various bills of sale of goods and services.

 

It is not possible for company to maintain the track of payment received for goods or services. The company on monthly basis deposits service tax on the basis of bills issued during the month (payment received in next month or not received). Whether the same is acceptable to department?

Replies (4)

use seperate series of commercial invoices for sale and service, this will reduce the burden of bifurcation of sale from service. 

Service tax is payable on the amount collected and not on the basis of bills issued.

The invoices has to be bifurcated for repairs separately.and for which service tax has to be charged.

For sale of spares, VAT has  to be charges which varies 12.5% or 4% as applicable.

for VAT the same has to be deposited by 20th of the subsequent month,

for Service tax collected in a particular month, the same has to be depsited by 5th of the subsequent month.

Also Service tax return has to be filed half yearly for 31.3 by 25.4 and for 30.9 by 25.10 respectively.

Thanks and regards,

Viswanathan

MBA(Finance)&CA(Final)

Dear Friend the main question is " It is not possible for company to maintain the track of payment received for goods or services. The company on monthly basis deposits service tax on the basis of bills issued during the month (payment received in next month or not received). Whether the same is acceptable to department? As there is no loss of revenue to Department. Company is ready to pay evenif the customer does not pay.

Service tax is payable on the amount collected and not on the basis of bills raised.For this u can maintain the record separately when u collect payment deposit service tax accordingly.The Service Tax payment for preceeding month the due date is 5th (excluding March month 31st march)


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