As per provision of Service tax, liability arises in the case of amount received.
What if the service provided does not deposit cheque tentatively, then what ?
Whether Chque date should considered or deposit in to bank should consider?
Ameet (L) (1678 Points)
11 January 2010As per provision of Service tax, liability arises in the case of amount received.
What if the service provided does not deposit cheque tentatively, then what ?
Whether Chque date should considered or deposit in to bank should consider?
Amir
(Learner)
(4016 Points)
Replied 11 January 2010
Dear Ameet,
1) u r rite in saying that service tax liability arises on receipt of amount EXCEPT IN CASE OF ASSOCIATED ENTERPRISES WHERE LIABILITY ARISES EVEN ON ACCRUAL.
2) DATE OF TENDERING OF CHEQUE TO THE BANK IS CONSIDERED AS "DATE OF PAYMENT" (SUBJECT TO CLEARANCE) i:e If Ch. deposited in Bank on 10.01.2010 & cleared in a/c on 13.01.2010 then 10.01.2009 will be taken as Date of payment.
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India