Shaik ( M.com,IC(W)AI - Inter) (723 Points)
18 January 2011Dear All !
one of our client, invoice has been issued for Whole Year that is 20-1-2011 to 19 - 1-2012, but the payment is being done through ECS every month by 20th ( for 12 months that amount would be splitting ) and the receipt has been taken for whole year. How should Service tax and Tds should be accounted ?,
Pankaj Arora
(Learner)
(3134 Points)
Replied 18 January 2011
Service tax have to be collect at the time of billing and payment of service tax payment will be on receipt basis.
Tds will be deduct by book entry.
SUNIL GARG
(CHARTERED ACCOUNTANT)
(175 Points)
Replied 18 January 2011
Hi Shaik,
In Service Tax, Service tax is to be deposited on receipt basis, i.e. service tax is to be deposited only when the amount in respect of service is received. Service tax is to be paid even on receipt of advance payment.
In TDS, TDS is to be deducted on payment or credit of account whichever is earlier. So, if the payments are being made monthly, the liability to deduct TDS arises monthly and hence TDS is to be deposited withing 7 days from the end of each month.
sivaram
(Asst Mgr-Taxation)
(6918 Points)
Replied 18 January 2011
| Originally posted by : SUNIL GARG | ||
 |
Hi Shaik, In Service Tax, Service tax is to be deposited on receipt basis, i.e. service tax is to be deposited only when the amount in respect of service is received. Service tax is to be paid even on receipt of advance payment. In TDS, TDS is to be deducted on payment or credit of account whichever is earlier. So, if the payments are being made monthly, the liability to deduct TDS arises monthly and hence TDS is to be deposited withing 7 days from the end of each month. |
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Perfect answer
NARENDER PAWAR
(CA final Student)
(337 Points)
Replied 19 January 2011
in case of service tax- service tax should be calculated, when bill booked but service tax should be deposited, when the amount received.
in case of Tds- it should be deducted at the time payment or credit taken in the books of accounts whichever is earlier.
Jimmy
(CA )
(75 Points)
Replied 14 March 2011
My question is whether we need to RECOGNISE REVENUE in the books for advance received against future renderable service because as per AS 9 Revenue is to be recognised when Service is performed and there is reasonable certainty for collection of the same.
However in case where Collection is already made but service is yet to be rendered whether revenue is liable to be recognised?
Further in my case it is important to note that taxable invoice for future is already raised though the service is yet to be rendered and money also received.
Please suggest with justification when to recognise revenue in above case.
CAclubindia
