Books of accounts and records to be maintained for Service Tax

March 2, 2015

Under every tax law, there is necessity to maintain proper books, records and accounts that will facilitate the assessment and collection of duty as stipulated under the law.
Every person providing taxable service shall issue an invoice, a bill, or as the case may be a challan, signed by such person.

The Bill/ Invoice/ Challan should be issued within 14 days from the date of completion of such taxable service or receipt of any payment towards the value of such taxable service

Records normally maintained under other laws acceptable:

  • An assessee registered as a company under the Companies Act, is required to maintain proper books of accounts and records as specified in Companies Act.
  • An assessee, who is required to pay income tax, is also required to maintain certain books, and records under the Income-tax Act. (Cash book, Journal, Ledger, Bills, etc.)
  • According to Sales Tax Law, Labor Law, certain books, records, registers, accounts and returns have to be maintained.

Some of the other major records to be maintained are:

  • Correspondence files with the customers/ Client
  • Correspondence files/ records with the supplier.
  • Files containing agreements
  • Files containing bills raised on, receipts issued to customers/clients.
  • Files containing Challans.
  • Credit notes, Debit notes etc.

The importance of doing the above are:

  • Whether all the taxable services have been properly accounted.
  • Whether all the tax has been properly calculated.
  • Whether the value of taxable service has been properly arrived.
  • Whether Service Tax so calculated has been paid to be credit of government
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