Accrual basis of service tax

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Kesavan (Querist)
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08 January 2014 Hi Experts

Can you please tell me what is the accrual basis of payment and receipt basis of payment in service tax with example.

CA Vikas Acharya

CA Vikas Acharya (Expert)
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08 January 2014 as per point of taxation rules 2011,
point of taxation meaning there liability date will be depend as per the following rule:

cash received
bill raised
whichever is earlier of above two.

in case bill not raised within 30 days of completion of service, then

cash received
completion of service
whichever is earlier.

Now this date will be the point of taxation and you have to pay tax on next due date respective to that month
unlike earlier in which you have to deposit tax only after you receive the payment which is called receipt basis.

Kesavan

Kesavan (Querist)
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08 January 2014 Hi Vikas

thanks for your reply i want another details

i have service provider in manpower i have raised invoice of Rs 10000+1236 = 11236 to the customer. i am not received amount from customer. i pay the service tax amount of Rs. 1236 or not

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CA Vikas Acharya

CA Vikas Acharya (Expert)
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08 January 2014 https://www.caclubindia.com/experts/manpower-supply-services-partial-reverse-charge-mechanism-1577599.asp