07 October 2011
One of my Friend is providing services of animation courses to the students and charges 1200,000 annual fees and service tax is 10.3%. The bill is to raised at the time of registration and the fess is receivable on installment basis.(100,000/- per month). So my query is how the accounting entries will be passed and what is the service tax liability. I mean how it is to be paid on monthly basis or at the time of registration of course (AS-9)
07 October 2011
The service tax is to be paid on quarterly basis, if your friend has registered as a individual tax payer in fianance act. When an amount during the quarter received to your friend, liability will arise only after receipt the payment whether received monthly or other form.
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