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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
Service Tax »
 12 ways to avoid paying more for bank services
 I-T return filing: Income Tax offices, Ayakar Seva Kendras to remain open from March 29-31
 Top 5 money matters you must settle before March 31 From income tax returns to LTCG,
 Steep fines for missing March 31 income tax deadline
 CBEC clears some air on refunds under GST, central excise, service tax laws
 3 key tax changes for senior citizens which will come into effect from April 1, 2018
 Income tax returns (ITR) filing: Not filed returns for 2 years? Beware! Deadline nearing
 All you want to know about HRA: When you can claim and how it is calculated?
 Income Tax Saving: 6 ways to save tax without investing before March 31 tax deadline
 Unnable to file your tax return? Take help of these portals
 Do you know which 80C instruments can help you save tax and carry no future tax liability?

Pay service tax soon after raising invoice, Now
August, 01st 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 2018 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