29 September 2010
The service tax is to be treated as business income and deduction of same is to be allowed only on payment basis. In short the tax not paid is to be added back to the income.
29 September 2010
It is not a expenditure, It is a liability, so not crediting in P/L is correct.
If the company is not depositing the service tax, sec 43B doesn't attract. ( sec 43B says expenses deductible on payment basis) Becoz this is the matter of service tax. Service tax deptt. will raise the demand with intt. and penalty.
29 September 2010
For the clarity, the assessee is advised to deposit the service tax collected on his own (suo moto) along with interest @13% P.A., in order to avoid later complication.
29 September 2010
Hi, Pay all legal/Mandatory dues by making ledger scrutiny month end.Also see company is not bearing interest for accountant's work Liability can't go as income.Pay as advised above,
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