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Service tax on reverse charge??

Queries 821 views 3 replies

SANJAY

CHARTERED ACCOUNTANTS

943 Points Joined January 2011

Dear Members,

In case of GTA, Service Tax payable by the recepient of Services at the time of payment made to service provider. My question is that, If service is received in march 2012 and payment made in April 2012 then Whether that amount of Invoice and Service Tax should be shown in Service Tax return for the period of Oct 2011 to march 2012. if yes then how?? becouse payment of service tax is not made in march and it is due in April 2012, so paid in april month.

Please solve the querry as soon as possible..

Thanks in Advance

Sanjay Verma

Replies (3)

valji

Accounts manager-MBA

2150 Points Joined July 2008

NOW SERVICE TAX PAY ON ACCRUAL BASIS

AS PER MY KNOWLEDGE YOU HAVE TO SHOW IN MARCH RETURN

PLAESE ALSO CHECK VIEW OF OTHERS

SANJAY

CHARTERED ACCOUNTANTS

943 Points Joined January 2011

But dear valji,

In case of reverse charge service tax is payable on payment basis..

saikiran

96 Points Joined August 2009

Dear Mr. Sanjay

As per Point of Taxation Rules for reverse charge point of taxation will be on the date of payment. Hence when you are paying for the GTA the liability will arise. Hence, liability will be for the month of April, 2012 and rate will be 12.36%.