Advance payment
This query is : Resolved
01 July 2011
W.e.f. 01/07/2011 the service tax is payable on any of the event occuring first:
1. Provision of service in case where the invoice is issued later.
2. Date of issue of taxable invoice.
or
3. Receipt of advance from the customer.
If the customer pays 25% advance against the proforma invoice (not final invoice), in that case which date the assessee will be liable to pay service tax.
e.g. Date of Proforma Invoice is 1/7/2011 for Rs.10lacs (incl ST). Advance 25% received on 1/8/2011. Date of Final taxable invoice is 1/12/2011. Balance 75% received in 1/1/2012.
Which date the assessee will be liable to pay ST? Kindly clarify.
1. Provision of service in case where the invoice is issued later.
2. Date of issue of taxable invoice.
or
3. Receipt of advance from the customer.
If the customer pays 25% advance against the proforma invoice (not final invoice), in that case which date the assessee will be liable to pay service tax.
e.g. Date of Proforma Invoice is 1/7/2011 for Rs.10lacs (incl ST). Advance 25% received on 1/8/2011. Date of Final taxable invoice is 1/12/2011. Balance 75% received in 1/1/2012.
Which date the assessee will be liable to pay ST? Kindly clarify.
01 July 2011
For 25% advance, date is 1/8/2011 vide explanation to rule 3 of Point of Taxation rules,2011.
For 75%, date is 1/12/2011.
For 75%, date is 1/12/2011.
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