I have started working with a society. The existing practice is that service tax to be deposited only on receipt basis. Reason for the same is that upto Rs.20 lac of receipt we can deposit the same on receipt basis (as explained to me). Please suggest me whether this is correct or I should switch to accrual basis.
26 October 2012
You should pay the service tax on actual basis. If you have short payment receipt then after 3 month you can take credit of excess paid service tax under rule 6(3) of service tax rules 1994.
CAclubindia
