Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: VAT RATES :: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: form 3cd :: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT Audit :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: list of goods taxed at 4% :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD :: TAX RATES - GOODS TAXABLE @ 4% :: cpt :: TDS :: due date for vat payment
 
 
« Service Tax »
 Rules not ready, key e-way bill for GST may be delayed, says top official
 How Goods and Service tax will benefit the nation
 GST implementation may increase expense ratio of fund houses
 GST structure: an unfortunate compromise
 Extension Of Provisional Attachment Under Service Tax Provisins
 How favourable will GST be for Karnataka?
 GST rate impact: Here’s how the new tax can carry a greater punch
 E-way Bill - movement of goods under GST
 How the GST rates will affect your money
 GST: The coming disruption in the wholesale trade
  Ways In Which GST Will Impact The Average Indian’s Wallet

Now, pay service tax soon after raising invoice
August, 03rd 2011

A recent circular by the revenue department has caused ripples in the industry. The circular, which is effective from July 1, makes it mandatory for the service industry to raise the invoice within 14 days of completion of the service and pay service tax soon after. With a majority of business done on the credit system, service providers feel they would have to shell out service tax from their own pockets because payment is received at least a month or three months later.

If the invoice is not raised within 14 days of completion of service, on the 15th day it would be considered to be completed. The service provider is required to pay tax by 5th of the subsequent month when the invoice is raised. Industry experts said the circular would cause a loss to those who fail to receive payments from their clients.

In such cases, the government is asking for service tax where payments are not made, said Pranay Vakil, chairman, Knight Frank (India) Pvt Ltd.

For bad debts, there is no provision for refund, said advocate Shailesh Seth, an expert in service tax matters.

There are 121 types of services that are under the ambit of service tax, including real estate consultants, stockbrokers and customs house agents.

Chartered accountant Naresh Dharia said one has to pay service tax on the invoice amount. Often, there are adjustments with the clients, so the service provider ends up paying extra tax, said Dharia.

Deena Mehta, a leading stockbroker, said stockbrokers have always followed the practice of paying service tax immediately after raising invoice, irrespective of payments from the clients.

Customs house agents have lodged a protest to the department against the new circular

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Work Flow Workflow Software Software Automation Workflow automation Software Design Workflow Design Business Work Flow Workflow automation tools

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions