SHORT PAYMENT OF SERVICE TAX

[vuchcholla Bhaskar]

Dear Sir,

We have paid short payment of service tax reverse charge amount on 31.03.16 and balance amount we paid on April'16 with interest. Now my query is can we show in returns of Oct'15 to Mar'16 or Apr'16 to Sep'16.

Thanks for the understandings and awaiting for your valuable reply.

Thanks & Regards

Bhaskar

AI Summary

Short payment of service tax: disclose for period to which service pertains or in subsequent half year per accounting principle.
Short payment of service tax under the reverse charge mechanism paid partly on 31 March and balance with interest in April raises whether tax and interest must be declared in the ST-3 return for the period to which the service pertains or in the subsequent half-year when payment occurred. Accounting principles favour recognising tax in the month of the service and interest when paid; practical filing practice and departmental-audit adjustments may require reporting the April payment as an arrear in the April-September return. ACES may allow earlier posting but may conflict with accounting norms.