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Service tax invoice date
A company raised a bill of twenty lacs in a month. service tax @ 14.5% of 20 lacs is two lacs ninty thousand. payments are coming after 3 months atleast. It means 2.9 lacs*3=8.7 lacs. This amount is creating pressure on the copany and resulting decrease in capital.
if we are paying after payments which is after 3 months then service tax department is claiming interest which is again a pressure for no default by the company.
This is the issue.
Replies (1)
According to me, u can postpone the payment of service tax upto 1 month. In the instant case, as there is no advance payment Point of Taxation is the date of invoice, provided invoice is raised within 30 days of completion of service. So you can raise the invoice on the 29th or 30th day of completion of service and the liability to pay on these will arise in the next month.
Otherwise, better if u register your entity as a firm
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