Service Tax Amount Received

Dear Ameet,

1) u r rite in saying that service tax liability arises on receipt of amount EXCEPT IN CASE OF ASSOCIATED ENTERPRISES WHERE LIABILITY ARISES EVEN ON ACCRUAL.

2) DATE OF TENDERING OF CHEQUE TO THE BANK IS CONSIDERED AS "DATE OF PAYMENT" (SUBJECT TO CLEARANCE)  i:e If Ch. deposited in Bank on 10.01.2010 & cleared in a/c on 13.01.2010 then 10.01.2009 will be taken as Date of payment.