Payment received by post dated cheque

[color=blue]hi friend

rule 6 says that service tax paid when payment [b]recevied[/b]. so in your case you hane not recevied payment.
so no need to pay tax now.

Ashish Gupt
ca.ashishgupt @ gmail.com [/color]
:B :D

Thanks Ashish

but now he has got post dated cheque discounted by the bank.

When he has to pay tax?

The One Says:

This could lead to some debate. However my interpretation is that you have not received the consideration from your customer but a payment from the bank which is a seperate transaction.  

Rule 6(1) has also been amended w.e.f. 1-4-2005 to provide for payment of service tax to credit of Central Government by 5th of following month [b]in which payments are received[/b] towards taxable services.

For eg. in your books the service receiver should still be a Debtor so you have not received the payment towards taxable services.  (Contingent liability for payment to bank if you are conservative)

Pay tax before the 5th of the following month from the date of the cheque.

Other opinions are welcome.