Hi,
We are filing service tax half yearly and making payment of service tax quarterly for all the service tax invoices raised in the quarter irrespective of whether we have collected the service tax from client or not. My question is, if a client defaults in making a payment on a invoice containing service tax (went out of business etc), then do we still have to pay the service tax to the govt.? My consultant says yes, but it seems ridiculous and hard to understand. Can somebody please clarify?
| Originally posted by : ganesh | ||
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no, you need not pay service tax. Already paid service tax can be adjusted against the next quarter payment. |
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Dear Ganesh,
Thanks for your valuable input. Can you please also quote the relevant rules/notifications to support your view. Thanks a lot.
what are the process for block of Account for service tax?
| Originally posted by : navman | ||
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Excuse me for the earlier reply
With the introduction of Point of Taxation Rules, 2011with effect from 01.04.2011, the
whole gamut of payment of service has to undergo serious changes and business
practices have to be retuned to suit the rules.
There are no provisions if service tax has already been paid but the payment has
not been received. For example, if the service is already provided and the invoice has
also been issued, service tax would have been paid on the same, at the time when the
service is provided or at the time when the invoice is raised, whichever is earlier. But if
the payment is not at all received subsequently, there is no provision to claim
adjustment / refund of the service tax already paid.
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Shyam Joshi & Associates
Pune
B.Com
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