Vikram Patil (Sr Accounts Excecutive) (37 Points)
25 April 2009Please tell me a accounting procedure, when we receive an advance from customer ( Service tax payble on Receipt Basis) Please Explain in Detail
Tahseen Tabassum
(CA-FINAL)
(644 Points)
Replied 25 April 2009
Manmohan ACA, CS
(Chartered Accountant )
(14243 Points)
Replied 26 April 2009
since ST is taxable on receipt basis. If advance is received then also service tax shall be paid, however if afterwards the service was not actually provided and advance is refunded then, the tax shall be adjusted
Arun Kumar Singh
(GST Advocate)
(15188 Points)
Replied 27 April 2009
Service tax will be payble on Advance receipt.
Vikram Patil
(Sr Accounts Excecutive)
(37 Points)
Replied 01 May 2009
| Originally posted by :Tahseen Tabassum | ||
| " | Service tax will be payable on the amount of advance receipt as per my knowledge.. | " |
Thanks for your reply.
please let me know the accounting entries for that.
For Example if we receive advance Rs 10000/- then what entries to be passed in our books of accounts for creating a liability of the service tax upon advance
CA Shilpi Jain
(Indirect taxation)
(155 Points)
Replied 01 May 2009
On receipt of money
Bank ac Dr
To customer
To Service tax payable
(accounting of advance)
On payment of service tax
ST payable
To bank
On rendering of service
Customer
To Revenue
ADITYA
(Manager Finance)
(742 Points)
Replied 13 May 2009
Sir,
In case of failure to provide the services :-
What will be the accounting entry & Service Tax Treatment ?
Prudhvi
(Article student)
(21 Points)
Replied 18 October 2016
If the amount is not refundable to customer then amount is liable to service tax as forfeited advance is in nature of consideration for the service rendered and we would have already paid the service tax on it, no need to pass the separate journal entry.
If the amount is refundable to customber and tax is already then it is the nature of refund of consideration hence we can claim refund of service tax. Accounting treatment is refund the entire amount of payment received from the customer claim the service tax refund from dept or else if any other similar service has been provided to any other customer then we can consider that payment of service tax is for this service
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