Urgent query of service tax

This query is : Resolved

sanjeev (Querist)
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04 October 2011 sir,
clint ko ,party se advance received hua hai Rs 50000 ka, service not provide aur bill bhi nhi kata hai, total amount 200000 ana hai party se... but abhi advance me Rs50000 hi aaya hai,.... baki kaam hone ke bad milega...to kya kal service tax deposit krana hai rs 50000 ke hisab se....plz give ans

U S Sharma

U S Sharma (Expert)
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04 October 2011 if the advance is received then within 2 weeks the bills are to be issued,

if you like to pay the service tax on issue of bills, then put the amount under "advance from customers"

sanjeev

sanjeev (Querist)
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05 October 2011 na to service di gai hai abhi tak aur na hi bill kata gya hai ....srif adv received hua hai Rs 50000 ka abhi Rs 200000 aur bhi ana hai party se jab hum service provide kar dege but service tax deposit krau ya nhi

Maninder Jain

Maninder Jain (Expert)
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05 October 2011 Sorry to say the reply given by US sharma is not correct.

As per Para 3 clause (b) If an assessee receives advance payment and the service has not been provided then to the extent of advance the services is deemed to be rendered & service tax is payable.

Pls read Point of Taxation Rules 2011

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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05 October 2011 it becomes clear that where the value of taxable service has been received in advance for a service which became taxable subsequently, service tax has to be paid on the value of service attributable to the relevant month/quarter which may be worked out on pro rata basis.

source:Service Tax Circular No 65/2003 CX(ST) Dtd 05.11.2003.

sanjeev

sanjeev (Querist)
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05 October 2011 thanks all of u ....mene tax deposit kra diya hai....thanks