the problem is , we are labour supplier in govt organisation ,we are raising the invoices with Service tax but our payments are delayed a lot as principle employer issues the payment as and when funds are available.
even they does not pay us service tax , they tell us to deposit service tax and show us the challans and after that they reimburse the payment
now the service tax dept is claiming interest for delay of payment from me
please help me out
From India, Pune
As per the revised Service Tax rules, you need to deposit Service Tax irrespective of the receipt of payment.
You have to deposit tax on a monthly basis immediately after raising the invoice.
The Service Tax department is right in claiming interest on delayed deposit.
From India, New Delhi
Central exserise department is not right. can you pay service tax from the pocket? we do business , and due which we are required to pay service tax. if i have to pay service tax within the month, and principal employer does not pay , where from I will pay service tax. principal employer is not answerable hence not bodered.
From India, Guwahati
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