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Charging service tax on receipt basis by company

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Querist : Anonymous (Querist)
19 October 2012 company is paying service tax on receipt basis.it pays when it receives from client. it also recovers penalty and interest from client.
is practice of company correct. and what are tax consequences for such transaction

24 October 2012 This practice is not correct as the service tax as per POT Rules is to be paid on basis of date of invoice or receipt of payment basis whichever is earlier....



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