Advance Received

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yogesh

yogesh (Querist)

14 February 2009 Whether it is compulsory to pay service tax on advance recd for service which is being cancelled

K V Subba Rao

K V Subba Rao (Expert)

14 February 2009 Not necessary. Refer Para 8.6-1 in Page 125 of 11th edition of Taxmann's Service Tax Ready Rekoner authored by Sri V S Datey

Azmathullah Khan

Azmathullah Khan (Expert)

14 February 2009 It is compulsory to pay ST in advance receipt, provided if the service is cancelled during the same month it is not necessory, else if ur cancelling the service after 2 month of advance receipt, then u have to pay service tax on the month of receipt & utilised during the cancellation.

K V Subba Rao

K V Subba Rao (Expert)

15 February 2009 I agree with Mr Khan. From the Query I understood that Svc Tax was not paid when advance was collected. So I gave my previous reply.

Mr Khan has given rule position

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