service tax in respect of mobilisation adavance
This query is : Resolved
22 August 2013
As per contracts mobilisation advance was to be paid to contractor and same was to be recoverd from the bills @10%. Ther Service Tax was to be reimbursed to contractor as per actual and submission of service tax receipt chalan.
The contractor had requested for mobilisation advance after 5 months from the start of work. Till date contractor had raised 5 bills and bill was psssed. From 1st bill to 5th bill , service tax was calculated on the gross amount of bill and same was reimbursed to Contractor on submission of Service Tax challan.
The contractor had requested for mobilisation advance after 6 months in 6th bill and same was paid to contractor after deducting TDS only.
Further in 7th Bill, department has deducted mobilisation advance @10% of this bill and allreay paid paid amount in 1 to 6 bill.
The cotractor has now submitted the service tax challan of mobilisation advance and requested for reimbursement.
Please provide your view in this regard
The contractor had requested for mobilisation advance after 5 months from the start of work. Till date contractor had raised 5 bills and bill was psssed. From 1st bill to 5th bill , service tax was calculated on the gross amount of bill and same was reimbursed to Contractor on submission of Service Tax challan.
The contractor had requested for mobilisation advance after 6 months in 6th bill and same was paid to contractor after deducting TDS only.
Further in 7th Bill, department has deducted mobilisation advance @10% of this bill and allreay paid paid amount in 1 to 6 bill.
The cotractor has now submitted the service tax challan of mobilisation advance and requested for reimbursement.
Please provide your view in this regard
08 September 2013
Service tax is payable only when you render the services. Till you complete the contract and submit the running you cannot charge service tax and on mobilisation advance no service tax is applicable as you will be charging in your bills. Kindly note that onmobilisation advance TDS is applicable.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Capital gain from sale of house property
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- TDS on Purchase of Immovable Property by NRI from NRI
- FORM 26A APPLICABILITY
- LC charges in relation to Asset purchased should be Capitalised ?
- Before GSTAT- APL-02 Vs APL-04
- Annual return in Gst
- Regarding TDS Applicability For Director Remuneration
- Multiple trade mark
- Opting our of sec 44AD
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
