St on advance

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 March 2016 Dear Experts,
I have received the advance Rs. 1 lacs in respect of contract for flat's construction however the total contract value is 50 lacs inclusive materials, and this contract will take around 6 month to be completed query..1) will i have to pay 5.8% ST on advance of 1 lacs...2) do i need to issue the invoice of 1 lacs or not if not when i have issue the invoice,

Regard
Mukul Goyal

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

28 March 2016 1 Yes you have to pay ST on advance received.
2 You need to issue invoice.

Querist : Anonymous

Querist : Anonymous (Querist)

28 March 2016 Sir.. Not any work is done yet in this case how can i issue the invoice i mean this advance was received before starting the work....

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

28 March 2016 Raise the invoice for advance.

Querist : Anonymous

Querist : Anonymous (Querist)

28 March 2016 Ok.. assume if i have issue the invoice of 1 lacs however in further when contract would be completed then will i have to issue the invoice of 49 lacs..

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

28 March 2016 Yes you have to issue the invoice for 49 lacs only as already invoice issued for 1 lac.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok