A (Engineer) (132 Points)
14 November 2008Hi Can I pay the service tax of a Pvt Ltd company by using the internet banking account of the director of the company. Please note that the account of the company does not have internet banking facility. But one of the directors of the company have internet banking facility in his personal savings account. So can the director use his personal savings accout for paying the service tax of the company. Please reply its urgent
PLEASE SUGGEST A REMEDY
S.Srinivasaraghavan
(Chief Financial Officer and Co)
(11318 Points)
Replied 14 November 2008
While technically you can, it may give raise to problem as the debits will appear in th director's account who has nothing to do with transaction while no debit entries relating to service tax would appear in the company's account which renders service. The correlation would give raise to avoidable explanations and reconcilliations.
CA. C V SURYAM
(Practising Chartered Accountant)
(865 Points)
Replied 15 November 2008
Not only technically but also authentically because recently the Govt. has clarified that tax can be remitted from others' bank account provided the payees' details are mentioned clearly i.e., on behalf of whom tax is being remitted.
OFFICESELVA
(Service)
(515 Points)
Replied 16 November 2008
That clarification was issed by income tax department. Whether the same will be applicable for payment of service tax also? I think that since service tax is an indirect tax those who collected the tax alone is liable to pay the tax.
It should not be very difficult to open internet a/c in the name of the company. Let the same director do the transactions and pay service tax.
CAclubindia
