Revenue recognition

This query is : Resolved

sreenath (Querist)
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25 November 2011 Dear Sir,

Our ompany is yet to Publish one book, for that we are collecting Advertorial Charges and the Book is ordered 1000 copies by one of Our Client for that he will pay to us 3 Instalments Advance at the Commencement of the book and 2nd inst is at Printing and Final Instal is after Delivery.

My Problem is the Project is not yet Started but our company is Collecting the Advertorial & Books order Amount by Raising The Invoice is it correct or Not

Whether we should Raise Invoice Or Not

and The Taxs Applicable To Printing of the books any

Please Suggest me Very very Urgent

VISHRUT

VISHRUT (Expert)
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25 November 2011 Dear,
In my advice you can to raise final invoice right now rather you can raise performa invoice only.
Final invoice can only be issued on completion of books and delivered to the party.

Till the time the amount will be considered as advance receipt only.

It would attract sales tax only for the publishing house.

For writer it would attract service tax under royalty payment as well as TDs would come into play.

Message likes : 1 times

ACMA Obulirajan R

ACMA Obulirajan R (Expert)
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25 November 2011 Yes agreed to vishrat...

You can only raise proforma invoice to collect the advance payment and original TAX Invoice will be raised at the time of sale....

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