Service Tax April 17 to June 17 & Returns

[Anita Bodhe]

Hello,

I have a query with regard to Service Tax for Q1,April-June 17. With new notification , Returns for the Q1 has to be filed by 15th August 2017.

Service tax is paid on receipt of the payment from client. There are few outstanding of Q1 eg bills were raised in June payment expected in July, so ST otherwise would have been paid in Q2, but now what does one do when the returns have to be filed in August.

Ours is a proprietership firm so, as soon as the payment is received in July, pay the service tax and file return in August is what to be done. Kindly advice.

AI Summary

Guidance on Filing 2017 Q1 Service Tax Returns: Pay Upon Payment Receipt or Accrual by Next Month's 6th. A query was raised regarding the filing of service tax returns for the first quarter of 2017, due by August 15, 2017. The concern was about outstanding payments for invoices raised in June, with payments expected in July. One response clarified that if services were provided and invoices issued before July 1, 2017, the service tax should be paid upon receipt of payment. Another response emphasized that service tax should be paid on an accrual basis by the 6th of the month following the invoice issuance, and if not paid, it should be settled immediately with interest.