Service Tax payment liability

This query is : Resolved 

08 April 2010 Hi

I have raised a service bill to customer and i have booked income.

So tell me, as per law, when i am liable to pay service tax liability to government. At the time of booking sales (income) or when i will receive amount from customer. Please send me link for the same, if any)

08 April 2010 Service tax is to be paid on receipt basis not on accrual basis.

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Guest (Expert)
08 April 2010 Agreed with Mr. Mishra, but if branch company relations (Sister concern companies) is there then definitely it's S.Tax is to be paid on accrual basis.


08 April 2010 Service Tax payment should be on receipt basis only and not on accrual

08 April 2010 AGREE WITH EXPERT

08 April 2010 Agree with Experts

08 April 2010 agreed service tax on receipt basis

09 April 2010 It means we have to pay service tax on advance recd for the services to be provided after 3 month


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09 April 2010 Yes.

16 April 2010 But why we should pay now. Since i have not yet rendered service.

I read as:

If the charges for the service have been received in advance prior to rendering of the services,the tax is payable in proportion to the extent of services rendered by them.

16 April 2010 But why we should pay now. Since i have not yet rendered service.

I read as:

If the charges for the service have been received in advance prior to rendering of the services,the tax is payable in proportion to the extent of services rendered by them.

16 April 2010 please refer Service tax definitions.it is mentioned Service provided or to be provided . so in your case it is to be provided




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