Vikram Patil (Sr Accounts Excecutive) (37 Points)
25 April 2009Please Explain me the Detailed accounting Entries For The Following Transaction, when Service Tax is payble on Receipt & Payment Basis
1) Advance paid to Service Provider. He will raise bill on us after providing services ( may be after one month)
2) Advance Received From Customer. we will raise bill on customer after providing services ( may be after one month)
sudarsan.p
(student peii)
(27 Points)
Replied 26 April 2009
1ST CASE: WHEN THE ADVANCE IS PAID SERVICE TAX IS NOT APPLICABLE, i.e,WHEN THE SERVICE IS RENDERED THEN SERVICE TAX WILL APPLY . THE SAME WILL APPLY IN 2ND CASE
rohan
(student)
(29 Points)
Replied 30 April 2009
AS PER CENVAT CREDIT RULES 2004 NO SERVICE TAX IS PAYABLE ON ADVANCE PAID TO SUPPLIER.
ENTRY FOR SERVICE TAX WILL BE MADE WHEN BILL IS RAISED. BUT THE INPUT CREDIT OF SERVICE TAX WILL BE AVAILABLE WHEN PAYMENT IS MADE. AS IN YOUR CASE PAYMENT IS ALREADY BEEN MADE, THE INPUT WILL BE AVAILABLE WHEN BILL IS RAISED.
Kesavan
(Accountant)
(80 Points)
Replied 08 January 2014
Dear Sir,
I have raised invoice but i am not recieved money against invoice. so, i paid to the service tax or not
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