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.
Guest
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.
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.