Service tax on advance received

Dear Manish,

As per Point of Taxation rules'

RULE 3. Determination of point of taxation.-

'point of taxation' shall be,-

(a) the time when the invoice for the service provided or agreed to be provided is issued:

Provided that where the invoice is not issued within the time period specified in rule 4A of the Service Tax Rules, 1994, the point of taxation shall be date of such completion of provision of the service.

(b) in a case, where the person providing the service, receives a payment before the time specified in clause (a), the time, when he receives such payment, to the extent of such payment.

So as per rules,

service trax shall be paid on the part of payment received at the time of such receipt.

Invoice shall be issued for the part payment.

Accounting to be done as per invoice issued.