It is undisputed that service tax for the month of March is required to be paid by 31st day of March itself.
Now, in case of invoices received on which service tax is required to be paid under RC/PRC mechanism for the month of March 2014 on say, 10th April 2014 and paid to the vendor on 16th April, 2014, what will be the due date for the service tax on that invoice? 31st March or 5th May.
The invoice is booked on 31.03.2014 as per normal acounting practice.
Please guide.
Regards
Sujit
Sir,
Acutaly, what do you want, acutaly explain?
In regular course, we all receive bills for the services rendered in the month of March, on which RC or PRC is applicable, in the next succeeding month of April, but those bills are actually booked on the date of 31st of March of previous year. Say, Bills for March 2014 is received in April 2014 but will be booked on 31.03.2014 - as a matter of standard accounting practice.
Now, the question is when the liability to pay the RC/PRC, as applicable, on those bills is required to be paid to service tax authority? Is it by 31st day of March 2014?
CAclubindia
