28 June 2007
sir i get a huge amount for aproject to be executed as advance money.after wards as the projrct progress they are billed.so when is service tax to be charged .initaliy or when invoice is raised.
30 June 2007
Service tax is levied on "Serviec Provided" and when the amount billed got collected. There is no provision for payment of service tax on the advance payments.
02 July 2007
The right answer is different. As per Sec 66A of the Finance Act 1994 w e f 18.04.2006 service provided or to be provided are covered by service tax net. Though invoice is reqd to be raised only within 14 days from the date of service, the advance received to be subjected to cum tax working and service tax has to be paid to comply with Sec 66 A read with Sec 68. Cum tax working is permitted by Sec 67 (3) ibid.
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