Service tax liability
giridharan
(Querist) 17 February 2012
This query is : Resolved
I received certain consultancy services from overseas consultant, for which I am liable to pay service tax under Sect.66A of Finance Act, but I have not made any payments so far. Now the auditors insist to create a liability by an entry in my books of accounts towards this amount.
I find the explanation under sect.67(4) elaborates ‘Gross Amount Charged includes payment by cheque, credit card, deduction from account and any form of payment by issue of credit notes or debit notes and ‘book adjustment, and any amount credited or debited, as the case may be, to any account, whether called Suspense account” or by any other name, in the books of account of a person liable to pay service tax, where the transaction of taxable service is with any associated enterprise.’
Does this mean that this entry will attract payment of service tax under deeming provisions even though I have not made the payments. Kindly clarify.
Sankaranarayanan
(Expert) 17 February 2012
As per ur query I fpound that your activities of business atracted service tax perview. If then the tax should be paid within stupulated time or adjusted and file the half yearly rtn in the oct and march of every year. If failed then liable for penaity and interest. So noscope of keep the amount show in book if any more details send pm to me
