Service Tax Query
Dear friends we are a govt organization and do many govt projects and hence for some projects we are not able to pay service tax as it is govt project so there is no fixed receipt of payments this we are able to explain to our auditors be it cag or stax audit persons.
Now before me I am having a query.
We have started a new govt project wherein one party we are providing training to another party both parties are govt organizations and the training cost includes stax. Now in our agreement the stax is agreed, but as the payments from other party is very delayed sometimes we don’t mention stax in invoice we just prepare invoice including stax amount and on receiving the payment used to pass JV and split the tax amount from fees amount and pay stax. Now my senior is asking me to mention the stax in invoice, I am worried that if we book the stax now itself in tally then do need to pay tax whether we receive it or not. As you see till now we never book stax until the payment is received only when payment is received we split the fees and stax a/c.
What is the ideal procedure as sometimes the payments come after 4-5 or even 8 months.
CAclubindia
