Associated Enterprises
This query is : Resolved
17 February 2010
The service tax liability in case of associated enterprise arises on due basis. What is the time for payment of such liability-
-the due date of ST (i.e. 5th of next month), or
-the same day on which the liability arises
-the due date of ST (i.e. 5th of next month), or
-the same day on which the liability arises
17 February 2010
It has to be paid by 5th of next month irrespective of receipt of payment on due basis.
17 February 2010
It has to be paid by 5th of next month irrespective of receipt of payment on due basis.
19 February 2010
Sir,
I have read somewhere that the ST Liability on transaction with associated enterprises is to be paid immediately when it arises. It means it should be paid immediately without waiting for due date i.e. 5th of next month. Please follow this link http://fieo.org/view_section.php?lang=0&id=0,30,157,165
I have read somewhere that the ST Liability on transaction with associated enterprises is to be paid immediately when it arises. It means it should be paid immediately without waiting for due date i.e. 5th of next month. Please follow this link http://fieo.org/view_section.php?lang=0&id=0,30,157,165
19 February 2010
Your attention is invited to Rule 6 which deals with Payment of service tax –
(1) The service tax shall be paid to the credit of the Central Government,-
(i) by the 6th day of the month, if the duty is deposited electronically through internet banking; and
(ii) by the 5th day of the month, in any other case,
immediately following the calendar month in which the payments are received, towards the value of taxable services:
Provided that where the assessee is an individual or proprietary firm or partnership firm, the service tax shall be paid to the credit of the Central Government by the 6th day of the month if the duty is deposited electronically through internet banking, or, in any other case, the 5th day of the month, as the case may be, immediately following the quarter in which the payments are received, towards the value of taxable services:
Provided further that notwithstanding the time of receipt of payment towards the value of services, no service tax shall be payable for the part or whole of the value of services, which is attributable to services provided during the period when such services were not taxable:
Provided also that the service tax on the value of taxable services received during the month of March, or the quarter ending in March, as the case may be, shall be paid to the credit of the Central Government by the 31st day of March of the calendar year.]9
[ Explanation.- For the removal of doubts, it is hereby declared that where the transaction of taxable service is with any associated enterprise, any payment received towards the value of taxable service, in such case shall include any amount credited or debited, as the case may be, to any account, whether called ‘Suspense account’ or by any other name, in the books of account of a person liable to pay service tax.
Kindly refer the explanation to rule 6 , I feel it make the query clear.
Regards
(1) The service tax shall be paid to the credit of the Central Government,-
(i) by the 6th day of the month, if the duty is deposited electronically through internet banking; and
(ii) by the 5th day of the month, in any other case,
immediately following the calendar month in which the payments are received, towards the value of taxable services:
Provided that where the assessee is an individual or proprietary firm or partnership firm, the service tax shall be paid to the credit of the Central Government by the 6th day of the month if the duty is deposited electronically through internet banking, or, in any other case, the 5th day of the month, as the case may be, immediately following the quarter in which the payments are received, towards the value of taxable services:
Provided further that notwithstanding the time of receipt of payment towards the value of services, no service tax shall be payable for the part or whole of the value of services, which is attributable to services provided during the period when such services were not taxable:
Provided also that the service tax on the value of taxable services received during the month of March, or the quarter ending in March, as the case may be, shall be paid to the credit of the Central Government by the 31st day of March of the calendar year.]9
[ Explanation.- For the removal of doubts, it is hereby declared that where the transaction of taxable service is with any associated enterprise, any payment received towards the value of taxable service, in such case shall include any amount credited or debited, as the case may be, to any account, whether called ‘Suspense account’ or by any other name, in the books of account of a person liable to pay service tax.
Kindly refer the explanation to rule 6 , I feel it make the query clear.
Regards
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