Service tax on retention money

Dear Shailly,

Service tax follows cash (i:e receipt) basis except in case of transactions between Associated enterprise.

Therefore In present case Service Tax is payable on 90% of the invoice amount *(i:e what we have actually received)

and Service Tax on remaining 10% will be paid on receipt of the same.

i agree with amir......

sushmita, Shoorji judgment relates to income tax and not service tax

If we have received the exempt service and retained the money, should we disclose in the return inclusive of retention money or excluding it?