20 April 2009
We have raised invoice to our customer on 01-03-09 amounting to Rs. 55,150/- (Including Service tax @ 10.30%).
Customer booked expenses in their books & debited an amount of Rs. 1136/- towards TDS (@ 2.06%). We have recd TDS certificate but till 31-03-09 they have not released balance payment of Rs. 54,014/-.
Please guide me, whether our liability to pay service tax is arise in Financial Year 2008-09 or NOT
21 April 2009
Service tax liablity is raised on actual receipt basis. once payment will received, you will relised you liablity with that month service tax dues.