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Service Tax Amount Received

Ameet (L) (1678 Points)

11 January 2010

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?

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1 Replies

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.