Dear Sir,
One of our service provider doing catering services is paying the service tax every month only on the payment received on the invoices. Whether this is correct or the service tax has to be paid on the invoices raised every month and not to wait till the payment is received on this invoices.
Kindly experts please clarify whether this procedure is correct or how to pay service tax.
Most urgent.
Thanks & Regards,
S.Ramakrishnan
When to Pay Service Tax for Catering: Invoice Date vs. Payment Receipt Explained Under Point of Taxation Rules. A participant in a forum inquired about the correct timing for paying service tax for catering services, specifically whether it should be paid upon invoice issuance or upon payment receipt. Respondents clarified that, generally, service tax should be paid based on the invoice date, as per Point of Taxation Rules. However, an exception exists for individuals and partnership firms with taxable services under 50 lakhs, allowing them to pay tax upon receipt. The consensus was that if the service provider delays payment until after receiving payment, they may incur interest for late payment. (AI Summary)
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