Is cash based accounting allowed instead of accrual based accounting for service tax reporting? If yes, are there any limitations? Thanks in advance for your input.
4 Replies
N.VENKATARAMAN
(FINANCIAL CONSULTANT)
(56 Points)
Replied 08 June 2014
Earlier it was cash based accounting, but now it's accrual based only
Gangatharan
(Partner)
(108 Points)
Replied 10 June 2014
Till 2012, it was on cash basis,
But now every person should have to follow accrual basis only....
Venkatanarayana GM
(Partner associate at Hiregange & Associates)
(1279 Points)
Replied 10 June 2014
As per Rule 6 of service tax rules 1994, only the individuals and partnership firms whose aggregate value of taxable services provided from one or more premises is fifty lakh rupees or less in the previous year, then the service provider has the option to pay service tax on receipt basis and pay service tax quartely and file the returns half yearly.
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