When Liability Arises for payment of S.tax

Service tax liability on receipt basis, therefore you should bill rent bill from 15.03.09 to 31.03.09  on pro rate basis & receipt also in pro rate as per financial year  & total amount of sevice tax should be deposit on 31.03.09.as per financial year 2008-09.

I totally agree with Mr. Mahesh

agree with mahesh

agree with Mr. Mahesh

You mean to say from 15.03.2009 to 31.03.2009 service tax to be deposited in march 2009 and 1.04.2009 to 15.05.2009 service tax will be  deposited in april 2009. Pl. confirm.

Thanks

yes

ya sure ......

I could not understand, when it is adviced first, service tax liabilty  is on receipt basis, then what significance it will have to raise two seperate Bills. Since payment has been received in March, 2009, you have to make payment of service tax in March, 2009 itself.

S.Tax liability arises against realisation of amount of bill or advance, particularly in the month of March, payment of S.T. is 31.3.09 (amount realised from 1.3.09 to 31.3.09) have to be paid.

Sir,

Sir,

Service tax recd on rent in advance for the month of April, 2011 in March, 2011 as per agreement. When the same is to be deposited i.e. in march, 2011 or April, 2011. Will it make any difference if bill is not issued in March 2011 As per the latest notification no.18/2011 dated: 01.03.2011 vide Para no.3 (b) which shall come into force on 01.04.2011 if the service provider issue an invoice or receives a payment, the service Tax to the extent covered by the invoice or the payment made thereof, be deemed to have been provided at the time the invoice was issued or the payment was recd, as the case my be which ever is earlier.

Explanation.- For the purposes of this rule, wherever any advance, by whatever name known, is received by the service provider towards the provision of taxable service, the point of taxation shall be the date of receipt of each such advance

Will I be perfectly write to deposit the service tax in April, 2011, although recd in advance in the month of march,2011 as the notification is effective from 01.04.2011 and does not cover any service tax recd prior to 01.04.2011 i.e. during F.Y.2010-11. Please give your considered opinion.

In my view it should be paid in the month of April-11.