Advance Invoice entry

Service tax have to be collect at the time of billing and payment of service tax payment will be on receipt basis.

Tds will be deduct by book entry.

Hi Shaik,

In Service Tax, Service tax is to be deposited on receipt basis, i.e. service tax is to be deposited only when the amount in respect of service is received. Service tax is to be paid even on receipt of advance payment.

In TDS, TDS is to be deducted on payment or credit of account whichever is earlier. So, if the payments are being made monthly, the liability to deduct TDS arises monthly and hence TDS is to be deposited withing 7 days from the end of each month.

Originally posted by : SUNIL GARG
	Hi Shaik, In Service Tax, Service tax is to be deposited on receipt basis, i.e. service tax is to be deposited only when the amount in respect of service is received. Service tax is to be paid even on receipt of advance payment.   In TDS, TDS is to be deducted on payment or credit of account whichever is earlier. So, if the payments are being made monthly, the liability to deduct TDS arises monthly and hence TDS is to be deposited withing 7 days from the end of each month.

 Perfect answer

in case of service tax- service tax should be calculated, when bill booked but service tax should be deposited, when the amount received.

in case of Tds- it should be deducted at the time payment or credit taken in the books of accounts whichever is earlier.

thank you Very much Dear All

My question is whether we need to RECOGNISE REVENUE in the books for advance received against future renderable service because as per AS 9 Revenue is to be recognised when Service is performed and there is reasonable certainty for collection of the same.

However in case where Collection is already made but service is yet to be rendered whether revenue is liable to be recognised?

Further in my case it is important to note that  taxable invoice for future is already raised  though the service is yet to be rendered and money also received. 

Please suggest with justification  when to recognise revenue in above case.