we are providing WCT services & Civil work services @12.36%.
Our client is not paying the money on time and while making final payment they reduced the bill amount also. last year my turnover is arount 10 lacs , this year it exceed 57lacs. Can i pay service tax on receipt basis?? Bcoz i had done 40 lacs ka work not yet received a single paisa from client. pls reply
According to rule of Point of Taxation. You should pay the service tax on Bill Raised or Payment received which ever is earlier.
If you have not issue the invoice and work has been done than after 14 Day ( currently now 30Days) you should have to raise invoice.and pay the tax to govt.
CAclubindia
