19 December 2012
during the audit it was found that , Invoice is raised as on January 16th 2012, Service Tax charged @10.3%. The bill has been booked as journal as on 1.8.2012. Can you inform me which are the laws are violated by this accounting? I feel AS- 9 on Revenue recognisition has been violated as the income was to be booked as on 16.01.2012. Also if invoice is booked on 1.8.2012 service tax should be 12.36%.
In service tax as per rule 4A invoice is required to be raised in 15 days (30 days from 1 Apr 12) post completion of service provided, so there is non compliance.