Please Help: urgent query of service tax

Posted Date : 04-Oct-2011 , 10:03:24 pm | Posted By sanjeev

sir clint ko party se advance received hua hai ra 50000 ka, service not provide aur bill bhi nhi kata hai total amount 200000 ana hai party se but abhi advance me rs50000 hi aaya hai baki kaam hone ke bad milega...to kya kal service tax deposit krana hai rs 50000 ke hisab se....plz give ans

Category : Service Tax | Answers : 3 | Comments : 4 | Hits : 607

Answers

Answer By: CA. MANISH MALHOTRA

Yes, As per Rule 6 of the Service Tax Rules, 1994

The Service provider shall pay to the credit of Central Govt, (i) by the 6th of the month , if deposited electronically through internet banking ; and (ii)by the 5th of the month, in any other case -immediately following the calender month in which -"service is deemed to be provided as per the rules framed in this regard"

Also refering the rule 3(b) of point of taxation rules, 2011-
you should deposit the tax to the credit of central govt.
Hope this will help you

Answer By: Ashish Karundia

Dear Sanjeev,

As per Rule 3 of Point of Taxation Rules, 2011, point of taxation shall be the earliest of the following three 1) Date of receipt of amount 2) Date of completion of service 3) Date on which invoice is issued.

In the instant case, your client has received advance from his party, the in such case, the point of taxation will be receipt of amount. Thus, your client is required to deposit service tax on the same.

However, it may be noted that there are certain exceptions to General rule (i.e. Rule 3). So you are requested to go through those rules also.

Hope the above answers your query.

Answer By: Ketan Samdani

Yes service tax is required to be deposited.