15 December 2014
Our client is prop concern n sole agent of one of textile co. Suppose his service start in 1st quarter n completed when customer makes the bill pyt and submit C-form say in 2nd quarter. Textile co. books comm in 2nd quarter. Our client actually receivce commission after completion of service. The issue is when to book commission n make ST pyt. Sometimes it takes 2 to 3 quarter to complete service. When to book comm n pay Ser ice Tax in all above situations.
15 December 2014
In my opinion As per point of taxation Service tax is to be paid on raising invoice. If invoice is not raised within time specified under Rules then on completion of Service as in your case completion of service is date of booking comm and paying service tax accordingly
CAclubindia
