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serice tax liability

This query is : Resolved 

16 March 2009 A sum of amount received ( advance) on may,2008 against software license then it was not covered under servec tax. But I realased the licence on feb,09 to my customer and genarated invoice after purchasing from vendor then it was covered under st. From which date ST liability will be created on the advance amount received on May,2008 against that license ? urgent.

21 March 2009 Services provided or to be provided, this clause will render your advance as taxable.

The date of rendering is important, receipt or payment comes later.

The entire amount stands covered since service has been rendered post the introduction of the service.

This interpretation is purely on the provisions, you may evalute by going through the text of the act for convenience



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