22 January 2016
We are paying service tax on advance receipt also.at the time of passing entry itself we are booking service tax as input credit. Suppose that customer is rendering the services on next financial year means that input credit will be able to claim in current financial year or next financial year?
22 January 2016
IF YOU MAKE ADVANCE PAYMENT TO CUSTOMER ON THAT YOU SHOULD NOT PASS INPUT CREDIT ENTRY IN THE BOOKS UNLESS UNTILL YOU RECEIVE THE BILL. INPUT CAN BE AVAILED AS AND WHEN THE CUSTOMER GIVES THE BILL , SERVICE TAX CAN BE PAID IN ADVANCE BUT YOU CAN NOT AVAIL INPUT ON ADVANCE
As per Rule 6(1A) of Service Tax Rules, 1994, service tax can be paid in advance to the credit of the central government and adjust the amount so paid against the service tax which he is liable to pay for the subsequent period. The assessee is required to intimate the details of the amount of service tax paid in advance to the jurisdictional superintendent of Central Excise/Service Tax within a period of 15 days of such payment and indicate the details of the advance payment made, and its adjustment, if any in the subsequent return to be filed under section 70 of the Act.
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