Go AD-Free with CAclubindia PRO for Rs 167/Month Only. Subscribe Now!

Service tax deduction on website development

Queries 299 views 1 replies

Priyank

Others

32 Points Joined July 2014

Hello,

I am new to this club and new entrepreneur. Our company is pvt. ltd. company and we deal with website development services. My question is : we have taken service tax no. and have applied the same (12.36%) on the amount of website development for a govt. college as they have demanded a necessity of service tax in the invoice. So i just want to know

1. should we deduct service tax (compulsary) on all further invoices generated by us.

2. If we are generating invoice dictating advance payment of a project, is the same liable for service tax.

3. While generating invoice on advance payment shoud we reflect the whole amount.

Thanks in advance.

Please answer as early as possible.

Replies (1)

Tribhuvan Aditya Singh

Student as well as Self-employed

3710 Points Joined September 2007

1. you must show s.tax on every invoice issued by you.... 2. yes, you are reqd to show s.tax on that invoice also.... 3. you have two options for issuing invoice, first that you issue single invoice on completion of your work for the whole amt., and second that you issue multiple invoices as and when advance payment received.