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This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

25 December 2015 Dear Sir,
Here is the details of billing -
Date of Bill - 25/09/2015
Amount - 100000/-
Service Tax - 14000/-
Gross amount - 114000/-
Payment Received on 29/09/2015 is Rs. 80000/- from party and rest amount Rs. 34000/- received on 15/10/2015.

Please enlighten me on following points -
1. While filing return of 1st half year, whether the service tax is to paid on Rs. 80000/- or on the whole amount of Rs. 100000/- ?.
2. Service tax is payable on received amount or on the billing amount?

Waiting for your responce.
Thanks in advance.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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25 December 2015 The Service Tax needs to be paid on Accrual basis that on raising of invoice or receipt of advance which ever is earlier. So pay Service Tax on Rs 100000/-.

The exception is that where value of taxable services in previous year were less than Rs 50 lakhs, service tax can be paid on receipt basis (i.e. cash basis) instead of accrual basis.

Querist : Anonymous

Querist : Anonymous (Querist)

26 December 2015 Please mention the notification no. for the threshold of Rs. 50 lacs.

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