AS PER THE AMENDMENTS MADE IN THE FINANCE ACT,2012 SERVICES THAT FALLS UNDER SEC-66D OF THE NEGATIVE LIST ARE EXEMPT FROM SERVICE TAX WITH EFFECTY FROM 1ST JULY,2012. HENCE FROM 01.07.2012 THERE IS NO SERVICE TAX ON THE SERVICES FALL UNDER THE SAID NEGATIVE LIST.
PRIOR TO 01.07.2012, THE SERVICE PROVIDER RECEIVED SOME AMOUNT AS AN ADVANCE FROM THE SERVICE RECEIVER. THE PROVISION OF SERVICE WAS STARTED AFTER 01.07.2012.
MY QUERY IS WHETHER THE SERVICE PROVIDER IS LIABLE TO PAY SERVICE TAX ON THE ADVANCE AMOUNT RECEIVED BEFORE THE PROVISION OF SERVICE EVEN THOUGH THE SERVICE IS EXEMPT FROM SERVICE TAX FROM 01.07.2012?
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