SERVICE TAX
This query is : Resolved
29 July 2009
Dear Sir,
I have received a chq on 30 june09 with ch date 28.05.09 but credited in july09 in my a/c. when the service tax should be paid. Pls treat it most urgent. Pls help me out as it is still unresolved.
I have received a chq on 30 june09 with ch date 28.05.09 but credited in july09 in my a/c. when the service tax should be paid. Pls treat it most urgent. Pls help me out as it is still unresolved.
29 July 2009
X Pvt. Ltd. has made the payment of dividend in cash Rs.5,00,000 against the investment of Rs. 10,00,000 equity shares.
Whether the payment of Dividend in cash allowed under the Act and provision under the Income Tax ?
Whether the payment of Dividend in cash allowed under the Act and provision under the Income Tax ?
29 July 2009
Hi Praveen,
No payment of dividend in hard cash is not allowed.
As per section 205(1A) the amount of dividend including Interim dividend shall be deposited in a separate bank account within five days from date of declaration of dividend.
Dividend payable in cash may be paid by cheque or warrant or demand draft or pay order or may be credited to the bank account of the Member in terms of a mandate given by the Member.
The cheque or warrant or demand draft or pay order should be sent to the registered address of the Member and, in the case of joint holders, to the registered address of the person named first in the register of members or to such person or to such address as the Member or the joint holders have directed, in writing.
Regards
No payment of dividend in hard cash is not allowed.
As per section 205(1A) the amount of dividend including Interim dividend shall be deposited in a separate bank account within five days from date of declaration of dividend.
Dividend payable in cash may be paid by cheque or warrant or demand draft or pay order or may be credited to the bank account of the Member in terms of a mandate given by the Member.
The cheque or warrant or demand draft or pay order should be sent to the registered address of the Member and, in the case of joint holders, to the registered address of the person named first in the register of members or to such person or to such address as the Member or the joint holders have directed, in writing.
Regards
30 July 2009
Date of cheque is not relevant.
The question to consider is whether the amount will be treated as received in June or July.
There is no specific provision in the Service Tax law, nor there is any case law on the matter.
To avoid dispute, you may treat it as recipt for June in place of treating the receipt for July.
However, some authorities feel that the date of credit in the bank should be the relevant date.
The question to consider is whether the amount will be treated as received in June or July.
There is no specific provision in the Service Tax law, nor there is any case law on the matter.
To avoid dispute, you may treat it as recipt for June in place of treating the receipt for July.
However, some authorities feel that the date of credit in the bank should be the relevant date.
01 August 2009
In normal accounting it should have been accounted for June and therefore it would be said tobe recived in June and payment of St would have tobe made in July by 5th.
08 August 2009
Dear Mr Ravinder,
As per Rule 6 of Service Tax Rules, 1994, The Service Tax shall be paid to the credit of Central Govt. by the 6th day (e-payment) or 5th day (other modes) immediately following the calendar month in which the payments are received, towards the value of taxable services.
From the above, it is very clear that receipt of payment against the taxable value of services provided / or to be provided is important. The word reaslisation of payment is not mentioned here.
Hence, it would be proper to discharge the service tax liability by these dates, if the payment has been accounted in our books as received in the previous month.
Thanks.
Sarathy
As per Rule 6 of Service Tax Rules, 1994, The Service Tax shall be paid to the credit of Central Govt. by the 6th day (e-payment) or 5th day (other modes) immediately following the calendar month in which the payments are received, towards the value of taxable services.
From the above, it is very clear that receipt of payment against the taxable value of services provided / or to be provided is important. The word reaslisation of payment is not mentioned here.
Hence, it would be proper to discharge the service tax liability by these dates, if the payment has been accounted in our books as received in the previous month.
Thanks.
Sarathy
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