Sir,
Ours is basically a service providing company. But we also sell some broadband modems. For that, we have to pay Sales Tax. The modems are sold but payment collected thru telephone bills.
Some customers pay modem charges , by payment of bill. Some may avoid bill payment, and thus modem charge is not paid. And some cases, we cancel the modem costs, for some reason like - Broad band connections is not provided etc.
My requirement is - Whether the sales tax is payable immediately on billing, or on collection, OR, it should be paid on billing and cancelled sales tax be adjusted in next payment.
Please provide the provisions of the act.
regards,
Sukanya
CAclubindia
