11 June 2010
my client being an Individual under proprietorship concern engaged in providing Security Services to Renowned customers like IOCL.AIR etc.
He is charging S.T. on Invoices/Bills as raised to customers on monthly basis @ prescribed rate regularly.
So far S.T. Payment is concerned ,he is liable for the same on Quarterly on receipt basis.
But my client is paying on Monthly basis as per Bill charged instead of receipt basis on quartely.
I adviced him to follow the payment on Quartely basis but he refused to do so as their customer demanding on monthly basis documentary proof for making payment to him.
How to justify to their customers as to procedure as per law.
Please guide me accordingly to resolve the said issue.
18 June 2010
Also refer to your client's customers service tax Rule 6 of ST Rules, 1994 stating that we are a proprietorship firm and hence as per the said rule we are liable to pay S.T on quarterly basis.
CAclubindia
