Accounting on cash basis

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sawant sanchit maruti (Querist)
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12 June 2014 i have one client architect firm at the time of accounting i face a problem that a date of sales bill generation and its payment receipts are different on what date bill is enter? can anyone suggest me.. view through accounting on cash basis

Nikhil Kaushik

Nikhil Kaushik (Expert)
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13 June 2014 well if the firm is following cash basis, then revenue shall be booked on the day the money is received.

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sawant sanchit maruti

sawant sanchit maruti (Querist)
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13 June 2014 sir,
actually my client draw a sale bill in month april and they receive payment in month august.
in which quarter they are liable to pay the service tax for that bill

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Nikhil Kaushik

Nikhil Kaushik (Expert)
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13 June 2014 service tax shall be accounted for in august only. doesnt matter if the client follow cash or accrual basis.

Vishnu Saboo

Vishnu Saboo (Expert)
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16 June 2014 Service tax payment liability arise on the date of payment received, so if payment received in Aug, you have to pay service tax by 5th of Sep.