Liability under service tax, Service Tax

[Bakul Gandhi]

1. For debit or credit to an associate Concern, the service tax is to be paid immediately. The invoices, either for services rendered or services received, are booked at the prevailing rate on the date of transaction and service tax is paid on the basis of that rate. Later at the time of actual receipt or payment, exchange rate is higher. Does this affect the service tax liability? 2. The assessee applies and get one registration for Service Renderer and Service Receiver. The half yearly return is to be filed is one or two separate- one as Service Provider and other as Servcie Receipient.

Posts / Replies

[Dinesh Gupta]

The amount booked in the the books of account on the basis of prevailing rate of US$ should be final. The different due to fluctuation of currency should not affect the liability of service tax. Hence, in my view, no service tax is payable on difference amount.

[Dinesh Gupta]

Regarding your second query, a single return would be sufficient. Only an annexure for each service would be attached with ST-3 return.