26 September 2016
Distribution Services for the month of April We recd. Brokerage on 13 May Amt of Rs.50000/-and paid service tax on 2nd June 2016 Services For the month of May Brokerage Recd on 13 June Amt of Rs.55000/- & paid service tax on 2nd July Please tell me which is correct method ? In the month of April which amount should be a taken?
Distribution Services Date OF Receipt Date OF Invoice Amt APRIL 10-May 10-May 50000 MAY 12-Jun 12-Jun 55000 JUNE 11-Jul 11-Jul 40000 JULY 10-Aug 10-Aug 50000 AUG 09-Sep 09-Sep 55000 SEPT 13-Oct 13-Oct 40000
Method-I FOR SERVICE PROVIDER S.No. Apr/Oct May/Nov June/Dec July/Jan Aug/Feb Sep/Mar Total (I) SERVICE TAX PAYABLE (a) Gross Amount received in money (i) Against service provided : 50000 55000 40000 50000 55000 40000 290000 (ii) In advance for service to be provided : 0
Method-II FOR SERVICE PROVIDER S.No. Apr/Oct May/Nov June/Dec July/Jan Aug/Feb Sep/Mar Total (I) SERVICE TAX PAYABLE (a) Gross Amount received in money (i) Against service provided : 0 50000 55000 40000 50000 55000 250000 (ii) In advance for service to be provided : 0
26 September 2016
Thank u Sir..Kindly explain in detail.Which rule applicable for the above method. If the total service for the year more than 50 Lacs then which rule is applicable
27 September 2016
As per point of taxation rules service tax payment can be made on receipt basis, if service tax payment for a year less than 50 lacs. More than 50 lacs it has to be paid on accrual basis.