Payment of st- old and new scheme

704 views 3 replies

Dear All Hope you are going well...

        A simple doubt confuses me..  As per old scheme of Service Tax, ST is payable on receipt basis and as per new scheme, it is payable on due basis.

One instance-

A provided a taxable service to B for an invoiced amount of 56,180/- (50000+ST @ 12.36) on 25th Jan 2013. 

suppose, B pays 50000 as full settlement in Nov 2013. no more additional payments.

Here as per due basis, A has to pay Rs.6180 as ST irrelevant of receipt from B.

But as per old scheme A have to make back calculation on Rs.50000 (ie, 44500+ ST 5500)

 

What is your comment.....???

Replies (3)

where did u get this problem??

 

Point of taxation Rules is applicable and the company has to pay tax with interest for delayed payment...

The excess ST paid can be adjusted as per Rule 6(4A) in subsequent periods...because Rule 6(4A) says that if bill is re-negotiated for deficient provision of service or otherwise, then the excess can be adjusted...

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