Receipt or due basis

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

25 December 2011 I have raised a bill in the month of April 2011 on which service tax was charged. I have not the received the payment of the bill till date. Now since service tax payment is to be made on accrual basis from 01.07.2011. Whether I am liable to deposit the service tax on the same.

CS Bijoy

CS Bijoy (Expert)
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28 December 2011 Service tax department will not wait till you received the money so while bill raised amount should be deposited within prescribed periods.

Querist : Anonymous

Querist : Anonymous (Querist)

30 December 2011 But Sir service tax has been made on accrual basis from 01.07.2011. And after raising my query I interpreted for Rule 9 of Point of Taxation Rule 2011 that service tax will be on paid when payment is received since bill is raised in April 2011. I would just like to know whether my interpretation is correct on the same.

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