Accrual basis

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 August 2011 Dear Sir,

what is meaning of Accrual basis service tax is taxable, will it have to be deposited on accrual basis or after receiving payment from parties

thanks

CA Navin Jain

CA Navin Jain (Expert)
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22 August 2011 From 01.07.2011 service tax liability will be determined on the accrual basis and not on the basis of payment.

Now Liability is determined on the basis of invoices.

Querist : Anonymous

Querist : Anonymous (Querist)

22 August 2011 it means when we raise invoice then liability is accrued to the department whether we received payment or not, we have to deposit service tax monthly

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CA Navin Jain

CA Navin Jain (Expert)
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23 August 2011 Yes, when we raise invoice then liability is accrued to the department