GST On Advance payment made against Proforma Invoice.
This query is : Resolved
02 June 2021
Kindly clarify whether we have to book GST (CGST/SGST/IGST) while making advance payment to the Service provider,(Part payment) against the Proforma Invoice received from the Service provider. due to COVID-19 situation the Service Provider is not able to send the Original Invoice. Right now we are not booking directly to Expenses GL but booking in the Advance GL and on receipt of the original invoice the expenses will be booked.
Regards.
Regards.
02 June 2021
Hi,
You can book GST only when you receive the Services & you have the Original Tax Invoice with you.
Since you cannot claim Input Tax Credit on basis of Proforma Invoice it is advised not to book GST in the Books of Account till the time Tax Invoice is received.
You can book GST only when you receive the Services & you have the Original Tax Invoice with you.
Since you cannot claim Input Tax Credit on basis of Proforma Invoice it is advised not to book GST in the Books of Account till the time Tax Invoice is received.
02 June 2021
Dear Sir
Thank you very much for clarifying. also advise whether, GST TDS is applicable on the Advance payment.
Thank you very much for clarifying. also advise whether, GST TDS is applicable on the Advance payment.
02 June 2021
Such TDS is applicable on payments made by Govt/LA etc. Read for more: https://www.charteredclub.com/tds-gst/
03 June 2021
you are following correct method, you need to account it as advance and GST can be availed only on receipt of original invoice.
TDS applicable on payment of advance so need to deduct and pay TDS on advance
TDS applicable on payment of advance so need to deduct and pay TDS on advance
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
- Tax on Deemed Capital Gain
- CLOSING STOCK QUERY
- Exiting partner in partnership firm in gst portal
- Type of Capital Gain
- Grand in aid
- IT returns for fresh job holders
- F&O reporting in ITR
- Difff in ais receipts and gst turnover
- Applicability of Books of Account for Commission Income (Sections 194D & 194H)
- Gst on travel by air for business purposes
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
- TDS on property - Form 141 query
- Seeking Advice: High Tax Shortfall on Job Switch + Let-Out House Property Loss in FY 2025-26
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
