CA Final Student
56 Points
Joined August 2010
I think, if Rs.50000 is different from bill raised of Rs.800000, there should be another invoice against which advance of Rs.50000 is received or it may be the case that the invoice is of Rs.850000 from which Rs.50000 is received as advance.
For exam purpose, advance should always be assumed as Inclusive of Service Tax and for remaining 800000, any assumption is allowed, i.e., inclusive or exclusive.
Practically, 50000 will be taken as inclusive of service tax and no need to make any assumption for 800000 as the facts can be ascertained.
Suggestions and corrections are welcome.