Kildly advice on the service tax issue
As on 31.03.2011 There is output service tax of Rs 10000/- in the books. which is nothing but tax on serives rendered for which service tax is not collected. since upto 31.03.2011 service tax is paid on receipt basis this amount is not received and hence not paid as on 31.03.2011.
From 1st april 2012 the rule changed, where in service tax is to be paid on accrual basis which the company is paying service tax on invoice raised from the effective date on accrual basis till date.
My query is, what is the tax impact of the 10,000/- showing balance as 31.03.2011 when it is received subsequent month. Should it be paid subsequent along with the accrual basis or not.
Pleae provice clarity in linewith law
Thanks in advance.
Surya
CAclubindia
