Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Doubt on service tax liability

sumit (proprietor) (58 Points)

27 July 2015

Please clarify about the following situation:- My Company raised an invoice for receiving advance payment of Rs 30 lakh in July month but advance payment is still not received. So, Is Service tax liability will arise in this case and do we need to deposit service tax on 5th of August 2015 (after due consideration of input credit).

Reply
Follow
Share

2 Replies

Rajesh (student) (193 Points)
Replied 27 July 2015

Dear Sumit,

you are proprietor . According to Service Tax proprietor/Firms can remit service tax payment every quarterly. and file the returns halfyearly.

Only Companies will remit every month on or before 5th of every month.

in your case, you have till 5th oct ,2015 to pay your service tax

Upgrade to CAclubindia Pro. Subscribe Now!

Manish Agarwal (Article) (52 Points)
Replied 28 July 2015

Dear Member , Since you are registered as a company, payment of service tax has to be depoaied to the credit of Central Govt. by the 5th of the month immediately following the month in which the Invoice has been issued. The Point of Taxation Rules has been brought into effect to bring into action accrual basis for payment of service tax.