Late collection of service tax and effect in accounts

Dear Sir,

One of my client is a service provider (stamp duty & registration related work). My client has provided services of conveyance work to society and service tax is paid by client from his profit. Now the senerio is, Service tax has to be collected from society by client and client has not shown service tax amount to be recoverd from society in the financial statements.

My Query is:- 

1. What will be the effect if the service tax amount is collected from society by the client.

2. If the query is raised by department what will be explainations.

Kindly resolve the query.

 

Thank You.

Replies (1)

Then the received amount should be shown as income for the year. 

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