ours is a Ludhiana,Punjab based advertising agency if we have lavied service tax on the invoices raised to our clients as rule we have to submit tax by next month but we did not get credit of service tax from client
since we have to deposit service tax as per the rule but can we cliam credit of service tax deposited from the department since our client did not pay us
Service tax is only payable on receipt of the money from the client.
For example you raise an invoice for Rs.10,000/- + ST Rs 1000/-. Client pays Rs.8000/- only then you have to divide 8000 by 1.10 = 7272. On this amount ST is to be paid. In this exampel 10% = 727/- has tobe paid. When the balance is recived after 3 months then the balkance recived wouldhave tobe calcutaed and paid.
thanks sir
CAclubindia
