31 March 2009
i'm working in a service provider firm.
we genrate a service bill to our clint everymonth but as per terms they paid after 60 days. i want to know that march month entry when i should entered in our books & how to service tax provision i have to do. pls specify enrty if possible.
31 March 2009
Service tax is payable at the time of collection of value of consideration except in case of Associate Enterprises (Related Party). In your case you can account the income for Mar-08 in the month of Mar-08 and pay the service tax on the same at the time of receipt of the amount against the same.
31 March 2009
I agree with the view expressed by Sri Tushar. You may also like to take note of the following:
"...The service tax is payable 5th ...of the month following the month in which payments are received toward value of taxable services except in March..."
"...Payment of tax on amounts actually received - Rule 6(1) makes it clear that the liability is to pay service tax on payments towards value taxable services actually received. Thus, service tax is not payable on amounts charged in the bills/invoice, but on amounts actually received"
CAclubindia
