Service tax on payments received but not cleared

This query is : Resolved

Vikram (Querist)
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29 March 2013 Dear Sir,

I have a query regarding payment of service tax on Payments received (Cheques deposited but will get clear after 31st ).Do we need to pay service tax on such payments?

Also How do you account for payments received but not cleared in your accounts?

CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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29 March 2013 Yes, you required to pay service tax on payments received since the same amount booked in accounts before 31st.

It should be accounted as normal receipt with ST. (Accounting is done on receipt of cheque not on clearance).

The same will be shown in BRS.